New Mexico To Invest (CONT’D FROM PAGE 6)
“This is about business retention,” Rep. Patricia A. Lund- strom said. “It’s critical that McKinley Paper remains open. It is companies like this that help us grow our manufactur- ing base. This investment is foundational for continuing to build the economies of McKinley and Cibola counties.” “Protecting and growing jobs in McKinley County has been a priority for me,” New Mexico State Sen. George Muñoz said. “McKinley Paper’s $5 million in state funding from LEDA to purchase equipment for the plant will ensure that 125 jobs will be protected and will allow the hiring of 10 additional jobs. This is a huge win for Senate District 4, the city of Gallup, McKinley County, and New Mexico.” The plant needs a constant supply of steam, water, and power to operate 24 hours a day to be cost efficient. “The main reason McKinley was situated here was because of the resources that Escalante Generating Station managed and supplied to the paper mill. Without that, we are at a very high risk to cease operations,” Wilfrido Rincon, COO of McKinley Paper, said. “Now, with LEDA, we feel we are in a very good position to maintain operations and even hire additional people. We can invest in additional assets and equipment and guarantee a steady supply of steam, water, and energy, vital to our long-term operation.” McKinley and Tri-State are negotiating the terms to pro- vide short-term services, and for the purchase and trans- fer of equipment and facilities. Following the transaction, some of the Tri-State workers who currently operate that machinery will be hired by McKinley Paper.
Michelle Lujan Grisham said. “This project and this funding was a priority -- and I’m thrilled to see it come to fruition. We will continue to invest in, and support, manufacturing jobs in our state.” The LEDA investment flows from a special appropria- tion in House Bill 8, a measure backed by lawmakers for emergency economic assistance to McKinley and Cibo- la Counties as a result of the shutdown of the Escalante Generating Station. The LEDA project agreement between McKinley Paper and the EDD is for 10 years. McKinley Paper has operated in New Mexico for 27 years and is the economic base anchor for eastern McKin- ley County and western Cibola County. The company has 125 employees with salaries and benefits up to $100,000 annually. The plant reprocesses recyclable paper and cardboard into packaging containers and e-commerce. “The LEDA assistance is an investment in high-paying jobs and an investment in this community,” Cabinet Sec- retary Keyes said. “The new infrastructure will help sus- tain McKinley Paper so it can maintain, and even grow, the manufacturing workforce in northwest New Mexico.” The McKinley-New Mexico plant’s capacity is 250,000 tons a year with customer markets in California, Colorado, Arizona, and the rest of the Southwest U.S. Region, and as far East as Illinois and Indiana. The New Mexico plant also exports paper products to Canada and Mexico.
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November 2, 2020
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