Moreno Announces H.I.G. Capital’s First Installment Payment Ready for Paper Mill Workers
Article presented by Tomlinson Insurance Agency …
Last April, workers of the Pixelle Specialty Solutions paper mill were learning of the planned shutdown of the 215-year-old mill. On Good Friday of 2025, Ohio Senator Bernie Moreno was one of several government officials who led a rally for mill workers, announcing H.I.G. Capital, which had purchased the mill in 2022, would delay the shutdown.
The delay allowed elected officials to design what would be considered a Plan B. The news of the delay gave new hope that the mill might survive. However, that hope was dashed when the plant closed its doors four months later. Nearly 900 workers were impacted and about 600 were losing much of their defined pensions, some by as much as 50% according to Timothy Jenkins, former Vice President of the United Steel Workers Local 731.
An agreement was reached with H.I.G. Capital on a pledge of $5.5-million to be paid to those paper mill workers. Moreno was in Chillicothe to announce the first installment of $1-million has been made. Moreno announced 569 workers will receive a check for an average of just under $2,000. “I want to thank the Foundation for Appalachia for their hard work” said Moreno. “They were the one community organization that stepped up and said ‘We’re gonna figure out how to do this.’ The million dollars is in their bank account.” Recipients will receive a letter in the mail with a W9 form. Once the paperwork is filled out and returned, checks will be delivered. “Once the foundation gets that back, they’ll process a check” said Moreno. “Thanks to the Working Families Tax Cut Bill that we (Congress) passed last year, that will be completely tax-free.”
In Their Own Words: Watch Moreno & Jenkins Answer Questions in the Videos Below
When it came to the H.I.G. payout, Jenkins said the workers who were hurt the worst were the ones with defined pensions. “We didn’t think that was fair. We wanted to share it with everybody … We didn’t think somebody who was there for one year should get as much as someone who’ been there 50-some years. We did have some employees that were still working after 50-years of service. So we felt they deserved more. We took all the years of service, divided that by the amount and then divvied up the certain amount of money to be appropriated per years of service.”
The remainder of the money is to be paid in 2030 and Moreno says they’ll receive about four times the amount of the first check.
In a collaborative effort between Moreno’s office and local governmental and business leaders, plans were being made for how to move forward for workers having suddenly lost their jobs. There was also concern the absence of a legacy business would cause a ripple effect on businesses within the region.
In the months since, United Paper Mill Company, LLC moved into the facility last October to begin transition to producing medical gloves. The manufacturer reportedly employs about 150. An estimated 90% of those workers were part of the paper mill work force.
Jenkins spent 38 years working at the mill. He says a number of former employees have either retired or looked to jobs in Columbus, Jackson and Portsmouth to find work. “About everybody’s unemployment ran out about mid-March” said Jenkins. As for receiving the first installment from H.I.G., Jenkins said “I’m very glad of it, of course I’d like to see the whole $5.5 be shared with us right up front, but it’s my understanding of it is the other $4.5-million is only available to us in five years if H.I.G. doesn’t have any liabilities here in Chillicothe, So, it doesn’t sound like it’s completely our money.” Jenkins added “everybody’s happy they’re getting something.”
Local representatives meeting privately with Moreno included Ross County Commissioners Jack Everson and David Glass, City Councilman Jeffrey Creed and Michael Throne, President and CEO of the Chillicothe-Ross Chamber of Commerce.
“From the outset, we understood that navigating the complexities following the Pixelle closure would be a long process for our workers and the community” said Throne via text with Litter Media. “Chillicothe and Ross County were fortunate to secure a buyer in U.S. Paper Mill Co. LLC, whose vision to rebuild the workforce is already taking shape. We now have clear direction on the administration of the multi-million dollar workers’ fund. We are deeply grateful to the Foundation for Appalachian Ohio for managing this critical resource, ensuring that eligible individuals will begin receiving checks soon. As 2026 unfolds, we remain optimistic that upcoming medical glove contracts will catalyze production right here in Chillicothe. These are significant milestones, all achieved in less than a year. Our community’s patience is paying off, and we continue to advocate for the best interests of Ross County’s dedicated workforce.”
Commissioner Glass told Litter Media “Many thanks to the Foundation of Appalachia Ohio and Senator Bernie Moreno for ensuring the funds from the Pixelle closure are being distributed. Our community has had many challenges, but we will continue to plan for growth and work to improve our local economy.”
When asked if the plan used in Chillicothe could become a template for the government to intervene on behalf of communities losing legacy industries, Moreno said “I think it’s a template for how government should respond. Nobody’s more pro-business than I am. But, businesses have to be a good community partner. This idea that a business located far away makes a decision that destroys a community, is completely unacceptable, and businesses will pay a price for bad behavior.”
