The closure of Pixelle Specialty Solutions’ paper mill in Chillicothe caused hundreds of people to lose their jobs, severely impacting the local economy. Now, new advanced manufacturing jobs are coming to Southeast Ohio, expected to provide jobs for many, but could pose issues for workers transitioning from previous jobs.
Pixelle’s paper mill closed down Aug. 10, 2025, due to the company's long-term efforts to strengthen operations in Spring Grove and Fremont, and hold its competitive position within the specialty paper market, according to a press release from Pixelle.
Ohio University’s Voinovich School of Leadership and Public Service has been conducting a skillshed analysis to look at new manufacturing investments in the region, as well as the transferability of skills from displaced workers to those new employment opportunities.
Laurie McKnight, senior research manager at the Voinovich School, discussed why the analysis was important to conduct after Pixelle's mill closure, which caused approximately 800 jobs to be lost.
“A lot of the people that were employed at that paper mill, because it was so old, were multi-generational, multi-family people … I mean, even three generations that might have been employed there,” McKnight said. “And how are these families then going to support themselves once they're all out of work? Immediately. Now, it's growing into more of, how do we support the workforce that they're going to start having in their region?”
Anduril Industries, a defense technology company, is one of the companies that is establishing a site in the region. The site, known as Arsenal-1, is being built in Pickaway County and will produce the YFQ-44A, an autonomous fighter jet, according to the Anduril website.
Although the facility is not scheduled to be fully completed until 2035, 50 people were already hired in 2025. Arsenal-1 is expected to hire about 4,000 employees and be a major employer for the local community.
Additionally, a Honda and LG Energy Solution battery plant is coming to Jeffersonville in Fayette County. That plant is expected to provide 2,200 jobs for the area, according to its website.
The study also mentions a Picanova Inc. operations hub located in Obetz, Franklin County, that is expected to employ 246 people, and Great Day Improvements, which is expanding in Southwest and Northeast Ohio.
All of the businesses mentioned are set to be within a 30-minute to 1-hour drive from OU’s Chillicothe campus. According to McKnight, that time was chosen because people are typically willing to travel that distance for work or training.
The Voinovich’s study began in June 2025 and aimed to look at both what jobs will be available with emerging businesses moving to the area, and what skills those positions will require.
Tuyen Pham, assistant research professor at the Voinovich School, commented on why the transition will be difficult.
“So basically, Anduril and Honda, they need a lot of engineering, right?” Pham said. “The paper mill, most of the people displayed are from manufacturers, so there's a big gap between how to move from technicians and manufacturers to engineering.”
Another part of the study was looking into how OU can facilitate the transition to those new jobs. Specifically, the Voinovich school developed a recommendation for OU-Chillicothe to develop programs that could provide training to develop necessary skills.
McKnight discussed what style of program would allow for flexibility with the local populations.
“Our recommendations so far in the report, especially when it comes to workforce, are stackable certifications,” McKnight said. “Short term certifications that can be stacked to create, over time, a bachelor's or an associate's degree, rather than a four year 100% in person on demand.”
In the study, courses such as small business bootcamps, digital marketing, financial literacy and E-commerce training are mentioned as ideas. Those would likely be held on weekends or nights to accommodate the working population.
“It's educating both workforce development professionals and showing them how to present this information to a mass population or a mass layoff, and get people re-employed quicker, and for equal or better wages … because in rural populations, when we have a large mass layoff or closure of any plant, that can be devastating to a town or a community in rural America,” McKnight said.
