Sofidel advances paper mill expansion without requirement for environmental impact statement
The expansion project in Duluth, Minnesota, will receive a US$ 250 million investment, creating 160 new jobs and enhancing production processes

Sofidel, an Italian multinational paper company, acquired the ST Paper mill in Duluth, Minnesota, earlier this year and plans to invest approximately US$ 250 million to expand the facility. With the unanimous approval of the city’s Planning Commission, the company will not be required to submit an environmental impact statement. The assessment was considered sufficient to ensure that the project will not cause significant environmental harm.
The expansion includes a 54,700-square-meter increase in the plant and the creation of 160 new jobs, in addition to the 80 existing positions. The modernization will allow the tissue paper conversion process into finished products, such as toilet paper, paper towels, and facial tissues, to be carried out directly at the Duluth facility, streamlining distribution.
Four building expansions are planned, including storage areas. The approved environmental assessment outlined measures for the safe treatment of groundwater and contaminated soils, as the site contains pollutants like PCBs, volatile organic compounds, and lead. The contaminated water will be directed to the Western Lake Superior Sanitary District facility for proper treatment.
The city of Duluth is finalizing an US$ 18,43 million tax increment financing package to support the project, which still requires City Council approval. Additionally, the city is seeking US$3,1 million in state funding from the Minnesota Investment Fund to ensure the project’s viability.