Pratt Paper LLC is opening a $400 million paper mill in Henderson, a project committed to creating 321 well-paying jobs over the next five years — plus about 700 construction jobs. It’s the largest investment in this region of Kentucky in more than 25 years, Gov. Andy Beshear said Thursday in announcing the major economic development.
Beshear and Lt. Gov. Jacqueline Coleman joined executives from Pratt and Henderson officials for the announcement.
“The paper mill will be the world’s most advanced, environmentally friendly 100% recycled paper mill,” said Anthony Pratt, executive chairman of Pratt Industries. “It is the single biggest investment our company has ever made and will create 1,000 jobs, including well-paying, American, green-collar manufacturing and construction jobs.”
Pratt plans to build two facilities totaling 1.15 million square feet along KY 425 in Henderson County. The company’s initial investment will support construction of a state-of-the-art, 450,000-square-foot paper mill that will manufacture 100% recycled products.
Company leaders expect additional future investment to construct a 700,000-square-foot corrugator plant to produce corrugated sheet and boxes, including pizza boxes and packaging for major distributors and big box stores, using paper sourced from the new paper mill.
Pratt leadership anticipates construction of the roughly 120-job paper mill will begin in March 2022, with completion slated for fall 2023. The corrugator facility is expected to be completed by the end of 2026 and employ approximately 200 people once fully operational.
Jobs created by the facilities are expected to pay an average hourly wage of $39 including benefits.
Company leaders also expect the project to contribute to approximately 700 construction jobs over the coming years.
Missy Vanderpool, executive director of Henderson Economic Development, said Pratt will be an ideal fit to help drive the local economy forward.
“This major project will bring many construction jobs to our town, as well as many new career opportunities for our citizens,” Vanderpool said. “The economic impact will be felt by our entire community. Henderson’s manufacturing roots run deep and we look forward to Pratt planting theirs here.”
Henderson Mayor Steve Austin said the project required a team effort to realize.
“It is nearly unbelievable the time, effort and amount of work our economic development team, the City of Henderson and its utilities, and Henderson County did over a three-month period to secure this major win,” Austin said. “Henderson was in competition for the industry location with at least six other prospects.”
The new location builds on Pratt’s existing presence in the commonwealth, which includes a Pratt Display manufacturing plant established in Hebron in 2011 that employs over 200 Kentuckians.
Pratt Paper produces lightweight, high-strength containerboard and corrugated board sourced from 100% recycled products.
According to a release, Pratt’s new operation will support Kentucky’s logistics and distribution industry, which employs nearly 80,000 people at 590 facilities statewide. Due to online ordering throughout the pandemic, warehouses and shippers saw surging demand and expansion opportunities.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $14 million in tax incentives.
