US-based speciality paper producer Twin Rivers has taken over Potsdam Specialty Paper (PSPI), with support from the New York state government.
Financial terms of the deal remain undisclosed.
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PSPI is a manufacturer focused on speciality latex, acrylic and other saturated base papers.
Announced by the New York government, the transaction is set to protect 70 jobs and provide greater certainty for the Potsdam paper mill, which had faced the possibility of closure.
The mill develops engineered paper grades used in applications such as durable labels and book covers, wide-format digital substrates, and premium retail packaging.
PSPI CEO Mike Huth said: “We’re excited about the ability to build upon our mutual legacy of papermaking excellence, enhance the value we bring to existing Potsdam customers with the expertise and resources of Twin Rivers Paper, and serve new customers.”
With the acquisition, Twin Rivers will add 26,000tpa in production capacity to its operations.
Twin Rivers Paper Company CEO Tyler Rajeski said: “PSPI’s strong focus on product development and customer collaboration aligns closely with Twin Rivers’ core competencies and builds upon our commitment to innovation, operational excellence, and customer-focused growth.”
New York State was involved in the deal, supplying financial support intended to improve the site and help keep production running, while maintaining manufacturing employment in the region.
New York governor Kathy Hochul said: “This investment helps secure the future of the Potsdam mill and provides a strategic growth opportunity for Twin Rivers Paper Company, which has operated three paper mills in New York since 2016.
“It will support the growth of additional jobs and shows that upstate New York is open for business.”
As part of the arrangement, the state provided a $1.82m regional council capital fund grant and up to $180,000 in performance-based excelsior jobs programme tax credits tied to employment commitments.
The funds are to be used for delayed capital work and necessary equipment maintenance.
Separately, the New York Power Authority Board of Trustees is expected to review possible support for the company through the Northern New York Power Proceeds programme at its next meeting.
