It has been reported by Talk Business & Politics that Representatives of Sun Paper Co., the $1.5bn paper mill project for Clark County near Arkadelphia, have said the deal is officially terminated. We reported the project would proceed on our website back in 2017.
In a letter dated 15th March, Andrzej Bednarski, International Project Director for Shandong Sun Paper Co., Ltd. notified Governor Asa Hutchinson and AEDC officials that the project would not move forward, citing trade tensions, economic uncertainty, and the coronavirus outbreak as reasons for pulling the plug.
“It is with great regret that we inform you that our Sun Bio mill project in Arkadelphia, Arkansas will be terminated,” the letter reads. “The current situation related to the coronavirus outbreak and continued political friction and economic instability make it impossible for us to proceed with the project within the timelines set forth in the environmental permit. With the likelihood of the project uncertain, it is also fair to allow the State of Arkansas to use its resources for other ventures that have less uncertainty in the medium term. At this moment, the collective uncertainties make it a better choice for both of us to abandon the project.”