By Kyle Poplin

One of Mt. Gilead’s biggest employers, PaperWorks, announced it’s closing at the end of March and 74 people will lose their jobs.

Emily Granholm, senior human resources manager at PaperWorks in Mt. Gilead, explained the decision: “Mt. Gilead is a great team with great people. This business decision was aligning our packaging network with market needs, both economically and geographically. … The Mt. Gilead community has been wonderful to PaperWorks and this was a difficult business decision. We appreciate all the support from the community during our years here and wish nothing but success and positive outcomes for all impacted by this closing.”  

PaperWorks, which provides paper packaging products, is based in Fort Washington, Pa., and owns six “converting facilities.” The one in Mt. Gilead – which PaperWorks purchased in 2011 – is both the smallest and farthest south. The others are in Louisville, Ky., Hastings, Neb., Baldwinsville, N.Y., Greensboro, N.C., and Kitchener, Ontario. The firm also has mills in Wabash, Ind., and Strathcona, Ontario, and employs about 1,400 people.

Granholm said PaperWorks “is providing severance to everyone based on tenure. Additionally, the company will be offering to subsidize COBRA for employees with coverage.” Asked if some might be offered jobs in Greensboro or other company locations, Granholm said, “PaperWorks will retain those who are able and interested in roles they are qualified for within the organization. PaperWorks strives to make this difficult transition as seamless as possible for workers through partnership with N.C.’s Rapid Response team, workforce development, Montgomery Community College, economic development, businesses and town officials. Site leadership is collaborating to develop action plans and work opportunities for all affected employees. PaperWorks, along with the local community, are organizing workshops to help with resume building and interviewing skills, connecting with other local employers for career fairs and networking events. The goal is for each affected worker to have a plan in place that works for them.”

Town Manager Dylan Haman said PaperWorks’ closure will cost the town between $20,000 and $25,000 in water/sewer revenues, which is significant but not catastrophic. (Haman pointed out that even with PaperWorks in full operation, the town’s water/sewer system has lost money for 14 years in a row.) The firm also pays sales tax, but it’s hard to figure that impact in the short term; sales taxes are paid to the state and then redistributed on a monthly basis to the town on a per capita basis. “This means that Mt. Gilead receives about 3.5 percent of the total sales taxes collected in Montgomery County,” Haman said. Property taxes are levied by the town, not the state, but occupancy of the plant will have little impact on those numbers. 

Granholm said PaperWorks owns the building in Mt. Gilead and will decide whether to sell or lease it at a later time.

Savannah Heath, Montgomery County’s economic development director, said she’s collaborating with the Mid-Carolina Workforce Development team, the town of Mt. Gilead and PaperWorks to organize hiring events. “Our goal is to support the affected employees by connecting them with new job opportunities within our community,” she said. “By working together, we can help these individuals transition smoothly into new roles and minimize the impact of this closure on our community. Our friends at Montgomery Community College will play a vital role in these efforts as well. I will be in touch in the coming weeks with information regarding a career fair/hiring event.”

Asked if other local employers, such as Jordan Lumber, can provide opportunities to displaced PaperWorks employees, Heath said that she and town representatives have “already had great conversations with several employers in the area who are willing and asking to participate in our future hiring event plans with PaperWorks.” She said Haman, Mayor Sheldon Poplin Morley and Mary Morley Poplin have been instrumental in that effort.

Morley said on facebook that he and his wife, Mary, both of whom work remotely, “are planning a career fair and workshops on resume building and remote job opportunities. Venues like Highland Community Center or Montgomery Community College are being considered for these events. We are working with Savannah for the career fair and other local HR professionals for the workshops.” He added, “We’re fast-tracking the local business incubator initiative from my campaign platform. If you’re interested in collaborating, let’s connect.”  

Haman said, “The town has been working with (Heath) to bring job resources and people together. The town can and will provide any spaces which are available to us (fire department, etc.) to be used for hiring events and career fairs. We are also following Heath’s lead and collaborating with the Mid-Carolina Workforce Development team and PaperWorks.”

Toyota is investing $13.9 billion in a plant in Liberty, N.C., which is about an hour from Mt. Gilead. VinFast is building a car manufacturing plant in Chatham County, a little more than an hour away. Asked if those plants – both of which are hiring – represent an option for displaced workers, Heath said, “Ideally, we want our Montgomery County industries and businesses to absorb these employees. Our industries offer competitive wages, great benefits and flexibility. I will be amiss if I funnel folks outside of the county when there are active opportunities for our people in Montgomery County. If our industries aren’t successful, we aren’t successful. I feel like there is an opportunity for our citizens and future citizens to take advantage of remote working opportunities as we are actively working with internet providers to improve our county’s broadband access. Toyota and other future major employers in the Carolina CORE are within commutable distance for our citizens, but our goal is to tap into the folks who already work or will work for Toyota and other area employers and encourage them to move to Montgomery County to live and play. We are team players by all means, but Montgomery County citizens and businesses come first in our book, and we will continue to support and lift them up as we navigate this transition period for our community.”

According to Business North Carolina, PaperWorks’ Mt. Gilead operation includes 39.5 acres and a 71,540-square-foot building constructed in 1979 and remodeled in 1988. According to tax records, the magazine reports, the total value of the property is almost $2.6 million.