Arkansas Governor Asa Hutchinson has signed a “letter of intent on investment cooperation” with Chinese-based Shandong Sun Paper Industry Joint Stock Co. to pursue a $1.3 billion pulp mill to be located in south Arkansas.
In attendance at the signing ceremony were U.S. Secretary of Commerce Penny Pritzker, Gov. Hutchinson, Chairman and Founder of Sun Paper Co. Hongxin Li, Arkansas Economic Development Director Mike Preston, and U.S. Consulate General Charles Bennett.
The agreement moves forward efforts between Sun Paper and Arkansas economic development officials for a “fluff pulp” factory, which would primarily create materials for baby diapers and other products. If the plant moves forward, it would be Sun Paper’s first North American operation.
“This is a first step in a long process, but the significance of the letter of intent is that Sun Paper commits to looking at Arkansas for a location for a $1.3 billion pulp mill and it sets out a specific timeline for them to make a site selection, hire consultants and do the necessary due diligence to establish the mill,” Hutchinson told Talk Business & Politics in a phone call from China.
The letter of intent sets a May 1, 2016 date to finalize a site for the project, which would create “hundreds of direct jobs” and result in “very significant” indirect jobs in the logging and timber industry in south Arkansas. The governor said specifics beyond those numbers would be difficult to estimate at this point in negotiations.
From Talk Business & Politics: https://talkbusiness.net/2015/11/gov-hutchinson-signs-letter-of-intent-for-1-3-billion-chinese-superproject-in-arkansas/