Company with packaging factory in Hamilton wants to build $600M mill in Dayton area

Production started in late 2021 at the Saica Pack plant on the corner of McBride Ct. and Enterprise Park Drive in Hamilton. The facility produces sustainable recycled paper corrugated cardboard packaging for a variety of customers. The company has over fifty plants in Europe and this is their first U.S. plant. NICK GRAHAM/STAFF

Credit: Nick Graham

Credit: Nick Graham

Production started in late 2021 at the Saica Pack plant on the corner of McBride Ct. and Enterprise Park Drive in Hamilton. The facility produces sustainable recycled paper corrugated cardboard packaging for a variety of customers. The company has over fifty plants in Europe and this is their first U.S. plant. NICK GRAHAM/STAFF

A European manufacturer of recycled paper for corrugated board, which already has a packaging factory in Hamilton, is exploring building a new paper mill in Dayton that could create more than 200 jobs.

However, the city of Dayton does not permit paper or pulp manufacturing operations, and the project likely would need zoning code changes to move forward.

Trotwood’s city manager, mayor and leaders with the city’s school district and the Trotwood Chamber of Commerce have already voiced opposition to the proposed project.

They say it could produce odors and pollution and hurt the quality of life for residents, businesses and the schools.

Paper mill proposal

Saica Group — a Spain-based company that opened a packaging facility in Hamilton in 2022 — has submitted a zoning code text amendment application that asks the city of Dayton to modify its zoning regulations.

Saica Group's paper mill in Manchester in the United Kingdom. CONTRIBUTED

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Saica is considering building and operating a recycled paper mill facility at the northeast corner of Little Richmond and Olive roads in northwest Dayton, just south of Trotwood, that could employ about 230 full-time workers, say documents submitted to the city. The site has recently been used for agricultural purposes.

“If Saica were to construct a recycled paper manufacturing facility in Dayton, we estimate the cost of construction to be about $600 million,” said a Saica company spokesperson.

Saica is asking the city to approve a zoning code amendment that would treat paper recycling differently from the city’s prohibition on all paper and pulp manufacturing.

The company says it makes sense for Dayton to have a prohibition on pulp mills that process raw timber. But the company says recycled paper product manufacturing facilities have completely different processes that have a much smaller environmental impact.

Production started in late 2021 at the Saica Pack plant on the corner of McBride Ct. and Enterprise Park Drive in Hamilton. The facility produces sustainable recycled paper corrugated cardboard packaging for a variety of customers. The company has over fifty plants in Europe and this is their first U.S. plant. NICK GRAHAM/STAFF

Credit: Nick Graham

icon to expand image

Credit: Nick Graham

Saica said these kinds of facilities are already located in densely populated areas across the U.S.

“Recycled paper product facilities do not use the noxious chemicals found at pulp mills, nor do they have the raw material storage requirements of such an operation,” says Saica in a proposal it submitted to the city. “Modern recycled paper product facilities do not present the odor or water use issues of some pulp mills. Because of the advanced technology used at recycled paper product facilities, it is not uncommon for them to be located in or near urban population centers.”

Pulp and paper mills can produce unpleasant smells and pollution.

Production started in late 2021 at the Saica Pack plant on the corner of McBride Ct. and Enterprise Park Drive in Hamilton. The facility produces sustainable recycled paper corrugated cardboard packaging for a variety of customers. The company has over fifty plants in Europe and this is their first U.S. plant. NICK GRAHAM/STAFF

Credit: Nick Graham

icon to expand image

Credit: Nick Graham

The proposed Dayton facility would feature much heavier industrial uses than the packaging plant in Hamilton. The project likely would be more akin to the Pratt Industries paper mill in Wapakoneta, Ohio.

Saica says it has recycled paper production facilities in Zaragoza, Spain, and in Manchester in the United Kingdom.

The U.K. facility has a water and effluent treatment plant, a power plant, paper machine processing areas, warehouse space and outdoor areas for raw material storage.

Saica Group's recycled paper mill in Manchester, in the United Kingdom. CONTRIBUTED

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The city of Dayton’s current zoning code for business park districts likely would allow a facility like what Saica already has in Hamilton.

Trotwood City Manager Quincy Pope Sr., Mayor Yvette Page, Trotwood Madison City Schools Superintendent Marlon Howard and Trotwood Chamber of Commerce Executive Director Marie Battle are sending a letter to the city of Dayton expressing their opposition to the proposal.

The letter says the proposed facility threatens to undo the progress the city has made to become a thriving, healthy community. They are asking regional stakeholders to explore finding another location for the facility.

“Our community is a close-knit one, where families, children and local businesses thrive in a safe and healthy environment,” says the Trotwood letter addressed to Dayton Mayor Jeffrey Mims Jr. “The siting of a paper recycling facility in close proximity to residential areas (such as Townview, Twin Creek, Stubbs Platt, etc.) raises serious concerns regarding air quality, noise and the potential for hazardous materials.”

The letter says the potential environmental risks associated with the facility could discourage future investments in the community and harm existing business operations.

Saica Group has more than 11,500 employees who are spread across the United States, Spain, France, Italy, Portugal, the United Kingdom, Poland, Ireland, Turkey, Luxembourg and the Netherlands.

The company says it plans to build a second corrugated packaging factory in Anderson, Indiana, beginning in 2025.

Saica said it is interested in Dayton because of its proximity to its other U.S. properties in Hamilton and Indiana, plus it’s a good location from a logistics standpoint.

The company said Dayton is well suited to address its workforce needs.

“Should Dayton become home to a Saica recycled paper products manufacturing facility, close proximity to an urban center of Dayton’s size would give Saica access to the raw materials it needs for operations, such as recyclable paper and old corrugated cardboard containers,” a company spokesperson said. “Finding a site that satisfies all of the above requirements can be quite difficult.”

The spokesperson said the company understands that local residents will have questions about its intentions, especially people who live near the potential project site.

The company is hosting a public forum at 6 p.m. Thursday, Dec. 5, at the West Branch Dayton Metro Library at 300 Abbey Ave. in Dayton to discuss the potential project.

Saica does not own the potential project site, and the company would still need planned development approval even if the proposed zoning code text amendment is approved.

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