By Ken Graham
The Times
Pulp Mill Financing Slated to Close in August
Equity and bond investors have agreed on terms to finance straw pulp plant near Starbuck
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July 27, 2017
DAYTON - Columbia Pulp I, LLC announced on Thursday that it has entered into agreements for the debt and equity funding required to commence construction of its new straw pulp manufacturing facility near Starbuck.
According to Columbia Pulp CEO John Begley, $133.6 million in tax-exempt bonds and $36 million in equity financing are expected to close simultaneously on Aug. 9. Construction should begin shortly thereafter, he said.
If plans hold, the pulp mill should be completed and begin operations in the fourth quarter of 2018. Begley said the project is expected to provide about 90 full-time jobs once it’s it full operation.
The $184 million facility is expected to produce 149,000 tons per year of market pulp, produced from wheat and alfalfa straw, and 95,000 tons per year of a carbohydrate-lignin co-product.
The Columbia Pulp mill, which was originally announced in late 2013, has been delayed repeatedly by financing issues. In December 2016, the firm had to abandon imminent funding plans when equity investors pulled out due to bond market uncertainty. Begley said he feels strongly that funding will be successfully completed this time.
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