Sale of Appvion Plant First Step in Determining Site's Future

News that the former Appvion plant in Roaring Spring has been sold is being met with cautious optimism by borough officials.

It was announced last week that a group of four buyers, collectively known as Roaring Spring Park LLC, purchased the plant with plans to find a buyer and identify potential uses for the plant that could breathe new life into the facility that closed for good in April.

"We see potential for this paper mill and are actively working to bring in new owners with the expertise needed to resurrect the closed facility," said David Muslin, chairman of Big Shoulders Capital, one of the four buyers.

Roaring Spring Borough Council President Rodney Green said he and Borough Manager Lisa Peel met with the group last week and was encouraged by their presentation.

"These people have found value in the existing mill and what they hope can be a business at that mill," Green said. "As a borough, we appreciate that someone has found value there and that they are putting their own dollars into that property with the hope that they can turn it around."

Those companies, Big Shoulder Capital of Northbrook, Il.; Capital Recovery Group LLC of Endfield, Ct.; Rabin Worldwide of Mill Valley, Ca.; and Calbag Metals Company of Portland, Or.; specialize in repositioning the assets of idle companies and to try to bring new life to the property by bringing in new owners.

While the purchase of the mill property is not a guarantee that a new industry will soon be operating in Roaring Spring, Green said the track record of the ownership group has him encouraged that the possibility is strong.

"I did my own little research and looking at some of the connections, these are people who are entrepreneurs, this is what they do, and they put their money out there and hope to turn it around," Green said.

Capital Recovery Group President William Firestone said the former Appvion had invested millions of dollars in upgrades to equipment which adds "significant" opportunity to add value to the property for potential buyers.

While it appears that Roaring Spring Park's first goal is to bring in an owner who could restart the plant in some capacity, if a new buyer is not found the group could opt for "site redevelopment," which may include selling the machinery and demolishing the building. Calbag Metals specializes in scrap metal.

"They have the ability to do that," Green said. "But that's not their first approach. They are going to try and actually bring a business in."

Whatever happens with the mill property, it won't happen overnight.

"The process of finding the right mix of investors and owners could take several months," said Muslin. "We are purchasing this facility because we believe it has long-term potential."

Green said that he was happy with how quickly the property sold but said people will need to be patient while the new investors get to work.

"I think it's going to take some time," he said. "I think everyone is going to have to be patient because even though they said they have some leads, that takes time. The first step though was a big one."

Green said the mill property selling so quickly is a credit to the determination of local officials not to let the plant sit and rot.

"I'm as surprised as anyone that this happened as quickly as it did," he said. "I give a lot of credit to the economic development people like the ABCD Corp. and other people putting it out there through the governor's rapid response. The legislative response we had from both Sen. (Judy) Ward and Rep. (Jim) Gregory created a buzz and I think that buzz is why we ended up here."