November 10, 2004

Ellen Qualls
(804) 786-2211, x2379

Andy Quillen
(276) 431-3002
Jill Vaughan
(804) 371-0049
-Midpaco also saves 33 former Mid-Atlantic paper facility jobs with $3 million investment -

RICHMOND - Governor Mark R. Warner today announced that Midpaco, a new company that specializes in converted paper products and wholesale printing and writing papers, will invest $3 million and locate a manufacturing facility in Scott County, bringing 140 new jobs to Southwest Virginia. Midpaco will be a limited liability corporation created through the purchase of Mid-Atlantic Paper, LLC, an existing company in Duffield, Va. The purchase will secure 33 jobs held by Mid-Atlantic Paper employees. Virginia successfully competed with California, Japan, Kentucky and South Korea for the project.

“Midpaco’s move to Scott County is great news for Southwest Virginia,” said Governor Warner. “This announcement proves that a strong work ethic is of great value to employers, and that the Commonwealth’s aggressive economic development strategy can play a major role in economic recovery.”

Midpaco will supply converted paper products to printing companies along the East Coast. In addition to providing printing customers with products, it will provide paper products for use in industrial packaging, including shirt collar reinforcements, shirt boxes, board stiffeners for blister packs, and shirt and dress liner tissue.

“Calpaco, the company that was seeking to acquire us, had looked at a number of sites with some of those being overseas,” said Andy Quillen, President of Midpaco. “Mid-Atlantic Paper has gone through some trying times in the past few years, but we have survived and grown stronger. Once Calpaco toured the Duffield facility and saw the strong employee structure and the determined and dedicated staff, they began talking with our local economic development office. The attractive incentives package sealed the deal. We are all very excited about Midpaco and look forward to continued growth in Scott County.”

The Virginia Economic Development Partnership worked with the Virginia Coalfield Economic Development Authority, the Scott County Economic Development Authority, the LENOWISCO Planning District Commission and the Duffield Development Authority to prepare the state’s proposal and negotiate an incentive package to secure the project for Virginia. Governor Warner approved a $175,000 grant from the Governor’s Opportunity Fund to assist Scott County with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission also was instrumental in closing the deal by approving a $175,000 grant through the Tobacco Region Opportunity Fund. The company is eligible to receive tax credits from the Virginia Department of Housing and Community Development because it is locating in an enterprise zone. The Virginia Department of Business Assistance will support the project by providing training through its Workforce Services Program.

“We applaud the entrepreneurial spirit of Midpaco as they have exemplified strength and determination in growing their business through a unique partnership to increase their customer base,” said Dr. David Redwine, chairman of the Scott County Board of Supervisors.


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