Recycling joint venture to create 210 jobs in Chesapeake
Kamine Development Corp. and Nicollet Industries LLC will invest $276M
Two sustainable development companies — New Jersey-based Kamine Development Corp. and Minnesota-based Nicollet Industries LLC — will invest $267 million to establish a joint venture paperboard recycling and production facility in Chesapeake, a project expected to create 210 jobs, Gov. Ralph Northam announced Tuesday.
The 335,000-square-foot Celadon Development Corp. facility will be at the Chesapeake Deepwater Terminal site.
“Celadon Development Corp.’s state-of-the-art operation will produce in-demand fibers from recycled paper products, benefitting the environment and positioning Chesapeake and the commonwealth as pioneers of this exciting recycling technology in the U.S.,” Northam said in a statement. “The capital investment, new jobs and environmental stewardship opportunities provided by this project will pay dividends for years to come, especially as we build out our clean economy.”
The joint venture will convert recycled mixed paper and corrugated cardboard into reusable fiber sheets to supply middle-market paper manufacturers in China. The company will use a paper mill dryer system to produce its paper products from waste cardboard for a lower cost than bleached paper.
At peak operations, Celadon might use up to 300 rail cars per month and export 80,000 TEUs — 20-foot equivalent units — per year through the Port of Virginia. The joint venture would produce about $200 million in export value annually at full capacity.
“Virginia has one of the largest and most automated container terminals in the country, and the port has been extremely supportive of our project,” Celadon CEO Tim Zosel said in a statement. “We worked closely with the city of Chesapeake to find a great piece of property that could be developed into a first-class location for our project.”
The Virginia Economic Development Partnership worked with the city of Chesapeake, the Hampton Roads Alliance, the Port of Virginia and the General Assembly’s Major Employment and Investment Project Approval Commission to secure the project, for which Virginia competed with South Carolina. Northam approved a $2 million grant from the Commonwealth’s Opportunity Fund to assist the city of Chesapeake. Celadon is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. The VEDP’s Virginia Jobs Investment Program will provide funding to support employee recruitment and training activities.