Wisconsin Rapids paper mill sale: Here's what we know, what we don't know and how we got here
WISCONSIN RAPIDS – After Billerud announced Thursday morning it will sell its idled Wisconsin Rapids mill, many questions remain on what that means and what’s next for the property.
Billerud announced it will continue to operate its Wisconsin Rapids converting facility but will sell the idled mill and related assets to Capital Recovery Group.
In covering the paper mill since Verso first announced it would idle production in the city, the Daily Tribune reviewed its coverage to help shed light on how we got here, what we know so far, and what we still don’t know about the sale.
Is the entire paper mill property being sold?
No. Billerud is selling its idled Wisconsin Rapids paper mill and related assets, but it will continue to own and operate its Wisconsin Rapids Converting Facility.
The converting facility will continue employing more than 130 people in the area.
When will the sale be final?
The sale is expected to close next month.
Who is Capital Recovery Group?
According to the company’s website, CRG is a global private equity firm that specializes in industrial assets and real estate. The company revitalizes idled or marginally productive assets and liquidates surplus.
CRG provides realty services, including creating opportunity for repurpose, sale leasebacks, real estate auctions, plant decommissioning, demolition and remediation management. It also offers auction services for industrial assets.
What does CRG have planned for the property?
According to the Thursday morning release from Billerud, the company has given CRG permission to begin promoting a public auction for certain idled and obsolete equipment. That auction will be held after the sale is final.
Aside from the public auction, we don't know. A Daily Tribune reporter has reached out to the company to discuss any initial plans or vision it has for the Wisconsin Rapids property but has not yet received a reply.
Is this sale a surprise?
No. Billerud has been making moves ahead of a potential sale for almost a year. Billerud restructured its operations last year that made it possible for the company to sell its unused property in Wisconsin Rapids.
On May 15, Consolidated Water Power Co. applied for two approvals through the Public Service Commission of Wisconsin that related to the structure within its parent company, Billerud. The commission then filed a notice of investigation in June, reviewing the application.
In those documents, CWP requested the commission’s approval to transfer its utility operations from Billerud Wisconsin to an “upstream affiliate,” Billerud U.S. Energy Holding. The documents also stated Billerud’s roll-to-sheet paper converting facility would be transferred from Billerud Wisconsin to Billerud Converting.
The documents stated the approvals would help facilitate a potential sale of the Wisconsin Rapids paper mill for reuse or redevelopment. The application stated if the transfers within the company were approved, Billerud could potentially sell the Wisconsin Rapids paper mill property and lease space from a new owner to continue its converting operations and Sonoco’s operations that are infrastructurally intertwined.
That document also stated Billerud could decide to keep the portion of the Rapids mill property to continue operations and sell the remaining property for reuse or redevelopment.
What do city leaders think?
Mayor Shane Blaser and Kyle Kearns, the city's director of community development, both shared their optimism for the future of the paper mill property Thursday afternoon.
Blaser said there's finally closure through that sale of the paper mill property and the community can move forward to support redevelopment opportunities at that site.
Kearns said his first impression of the news of the sale was there can possibly be more opportunity at the property. He said he has some connections with CRG, and the company specializes in similar situations with other mill properties.
"I think they have the best interest in redevelopment at the site," he said.
While the city has been in contact with CRG in the past, Blaser said the city will prioritize forthcoming conversations with the company to make sure CRG and the city are on the same page
Blaser and Kearns said they're hopeful to see good things to come out of the sale.
Is the city ready for redevelopment?
Yes. The city adopted a Wisconsin Rapids Recovery and Reuse Plan last summer that focused on the paper mill property in the event the property was sold or there was potential to redevelop the site. That reuse plan was put in place to act as a resource for any potential buyer or developer who was interested in the land and wanted to use some background information about any potential uses that would likely be successful in the community.
What’s in that plan?
The city worked with Vandewalle and Associates to research and identify five opportunities and five districts for the paper mill property. The plan could incorporate any mixture of redevelopment opportunities, depending on the property available to redevelop.
That plan focused on the potential for producing fiber-based renewable packaging, an industrial and logistics park, a renewable energy park, expanding pulpwood manufacturing and focusing on the agricultural industry.
Does that mean redevelopment is already planned?
No. Redevelopment on the site would depend on a variety of factors, including which developers might be interested in the property. The reuse plan can help focus on community needs and potential reuse, but a future developer might have other plans for the site and not need the reuse plan.
Kearns said the city and CRG can use the reuse plan as a marketing tool to attract potential developers, but the plan was not intended to follow it exactly, he said.
How did we get here?
In June 2020, Verso announced it would stop production at its paper mills in Wisconsin Rapids and Duluth, Minnesota, at the end of July, idling production indefinitely. As a result, Verso laid off about 900 employees in Wisconsin Rapids. In the announcement, Verso said the decision to reduce production stemmed from a decline for graphic paper due to the COVID-19 pandemic.
The halt of paper production marked the end of 126 years of history at the paper mill that turned out its first product in June 1904. At the time of Verso's decision to idle production, the company said it was looking into all options, including restarting the mills if the market conditions improved, selling the mills or closing them permanently.
The uncertainty continued in 2021, as various groups tried to get the paper mill reopened in Wisconsin Rapids. The Great Lakes Timber Professionals Association created the Timber Professionals Cooperative in 2020 and built the Consolidated Cooperative, enlisting timber cooperative members, community members and millworkers who aimed to purchase and operate the Wisconsin Rapids paper mill. The cooperative filed a letter of intent to purchase the Rapids mill in February 2021.
The community had a glimmer of hope when Verso sold its Duluth mill in May 2021, but nothing progressed toward a sale of the Wisconsin Rapids facility.
In March 2022, Verso officially merged with BillerudKorsnäs AB, who since changed its name to Billerud. Since the merger, Billerud had not shared any plans for its Wisconsin Rapids facility, although the president and CEO called the Rapids mill the largest "minor asset" in the acquisition and explained the facility would continue using the site as a converting facility but productions of paper and pulp would remain idle.
More about Billerud sale: Billerud will sell its idled Wisconsin Rapids paper mill
Contact Caitlin at cshuda@gannett.com or follow her on Twitter @CaitlinShuda.
This article originally appeared on Wisconsin Rapids Daily Tribune: Wisconsin Rapids paper mill: What we know about Billerud's plans to sell
