Billerud Cancels Expansion, Yet Remains Committed to Facility

Officials with Billerud announced in late May that the company will not go through with a major $1 billion expansion and conversion to cardboard production at its Escanaba, Mich. plant. The move comes after Michigan committed to more than $200 million in incentives to support the project. Company executives said current market dynamics don’t support such a plan, yet they remain committed to the plant and its three paper machines as a key part of their North American strategy.

The company acquired the Escanaba plant from Verso in 2022, and the facility remains a major market for the region’s loggers who supply pulpwood and hog fuel to the facility. While the local economy and forest products interests were disappointed with the announcement, Billerud executives say they will continue to invest in technology and efficiency at the plant.