The new owner of the paper mill in Duluth is planning a massive expansion that could create 160 new jobs.

Sofidel plans to invest at least $180 million to build a conversion facility and automated warehouse at the tissue paper mill, city documents show. That amount could easily rise to $250 million, said Chad Ronchetti, Duluth’s director of planning and economic development.

To finance the project, the company is applying to the city for approximately $20 million in tax increment financing.

“They hope to start construction this year,” Ronchetti said. “The sooner they are fully operational, the better it is for everyone.”

Italian paper manufacturer Sofidel bought the mill earlier this year, saying it employed 80 people and had a capacity of 65,000 tonnes per year.

The planned investment is welcome news for supporters of the mill, which was shut down by previous owner Verso in 2020, costing 235 jobs. Verso then sold it to ST Paper in 2021, which converted the mill into a tissue manufacturer with a new paper machine that came online last year.

“It took great foresight and herculean effort to make this happen,” Ronchetti said. “Partners from across the community and the state came together to get ST Paper up and running and position it for Sofidel to snap it up.”

The expansion would add about 450,000 square meters of factory space, including a 46-meter-high warehouse, and bring employment back to pre-pandemic levels.