Paper Mill Incentives Lost Due To Budget Cuts

North Carolina legislators spent two days preparing to give a Canadian paper company up to $10 million before hitting the brakes.

The House twice voted by narrow margins late Thursday to reject
a proposal to give Montreal-based Domtar Corp. up to $2 million a
year for five years. The Senate approved the spending on Wednesday,
the same day lawmakers approved a budget that included a $1 billion
tax increase and service cuts worth billions more.

The company planned to use the money to help it finance a
production switch and retain hundreds of jobs in one of the state's
poorest regions.

Domtar plans to stop making white office paper at its mill near
Plymouth, but sees a market opportunity to turn loblolly pine trees
into the absorbent fluff used in diapers.


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