Demolition of IP's idled containerboard mill in Millersburg, Oregon, to start January, does not include co-generation part of facility; IP declines to confirm speculation that company is in talks with interested buyer of the property

Sandy Yang

LOS ANGELES , January 16, 2012 (Industry Intelligence) – Demolition of International Paper Co.’s idled containerboard mill in Millersburg, Oregon, is expected to start in January and continue until early 2013, but the co-generation part of the facility will be spared from the demolition, according to IP spokesman Tom Ryan in an e-mail, The Albany Democrat-Herald reported Jan. 13.

There has been speculation that IP is in discussions with an interested buyer of the property, and that a deal could occur in the first quarter, according to John Pascone, president of the Albany-Millersburg Economic Development Corporation. But he did not elaborate.

IP spokesman Tom Ryan responded, “we wouldn’t disclose them,” on the rumored negotiations.

Debris from the demolition is expected to sell as surplus or scrap metal or taken to a landfill. Meanwhile, equipment from the site has already been transferred to other IP mills or sold, Pascone said.

He added that the demolition of the property would make it easier to market the site for future development. The mill sits on roughly 230 acres, the Democrat-Herald reported, in addition to 40 acres comprising the co-generation plant.

So far, asbestos abatement was completed last year and process materials were transported off the site in 2010, according to Ryan.

The former 580,000 tonnes-per-year paper mill shut down in December 2009, according to an IP press release issued Oct. 22, 2009. The closure affected 200 employees, though a skeleton crew still maintains the site, the Democrat-Herald reported.

The primary source of this article is The Albany Democrat-Herald, Albany, Oregon, on Jan. 13, 2012.

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