Nippon Paper plans Nippon Dynawave restart after tank disaster

Marcus Bennett

Nippon Paper plans a phased December restart at its idled Nippon Dynawave Packaging mill in Longview, Washington, after a deadly May white liquor tank implosion. The Japan-based parent reported 2.2 billion yen (about $14 million) in losses through Sept. 30 and expects NDP to post a full-year operating loss of about 21 billion yen (roughly $133 million).

Who is running the mill now?

NDP announced last week that Matt Peerboom retired immediately, effective Nov. 3. Senior Vice President of Finance Yusuke Mano will assume the president’s duties temporarily, and NDP said he and the rest of the leadership team “will provide continuity for its employees and the mill.”

NDP said Peerboom had planned to retire earlier this year but postponed so he could help lead the response and recovery. Peerboom said in an NDP statement: “With employees back at the mill and meaningful progress made toward a return to operations, it is time for me to follow through on my original retirement plans.”

He added: “It has been a privilege to lead Nippon Dynawave and work alongside the people who make this mill what it is.” Yusuke Mano now handles the president’s duties while the December restart remains a plan.

The majority of NDP employees were slated to return to work in mid-October, with subsequent returns on a staggered schedule. NDP had previously agreed to extend pay through at least Jan. 17 for employees who had not yet returned to the largely idled pulp and paper mill.

Since the incident, the Association of Western Pulp and Paper Workers (AWPPW) had worked with NDP to secure agreements for the facility’s employees. After NDP’s announcement last week, the union recognized Peerboom’s engagement during a difficult time and said it would continue working with the new leadership. The pay agreement protects income through at least Jan. 17 while returns stay staggered.

What changes in December?

Nippon Paper disclosed Friday that it aims to restart NDP mill operations in December. The company will do so in phases, using base paper and pulp procured externally. The announcement did not specify production volume or the sequence of lines.

The parent also lowered its financial outlook because of unforeseen events, including the NDP disaster in Longview and a July earthquake in Japan. It had not previously released estimates because “it was difficult to reasonably estimate the impact on the Group’s results,” according to the Friday notice.

“We are cautiously optimistic about the progress toward restarting,” said Josh Estes, spokesperson for AWPPW, in a Monday email to Packaging Dive. “The company’s December target offers a sense of direction, while the situation remains fluid and significant work and challenges remain.”

Estes added: “Respecting that process means addressing those challenges as they arise, keeping workers meaningfully involved, and ensuring safety remains central to every decision.” His caution leaves December as a phased target, not evidence of uninterrupted output.

What can the safety investigations establish?

Nippon Paper said it would fully cooperate with the various investigations into the incident. The announcement set no separate timetable for that cooperation.

The U.S. Chemical Safety and Hazard Investigation Board’s preliminary report in August suggested NDP was aware of safety concerns with the tank wall before the implosion. CSB is an independent, nonregulatory federal agency and does not issue citations or penalties. Its final report is expected in spring 2027.

The Washington Department of Labor & Industries serves as the main enforcement authority for the NDP site, and its investigation report was due Nov. 22. Formal findings will arrive in stages, with L&I’s report due before CSB’s spring 2027 final report.

What penalties and hazards remain?

L&I issued its second citation to NDP in roughly three months, and neither citation concerned the May implosion. The agency said it launched both investigations just weeks before the May incident.

The second, $77,800 penalty concerns a drain failure that created an approximately four-foot-deep sinkhole. L&I said a worker stepped into the hole, which contained pulp at approximately 145 degrees Fahrenheit. NDP has 15 days from the citation’s issuance to appeal.

In August, L&I cited a separate broken handle on an aqua ammonia clarifier tank used to treat wastewater from the mill’s pulp and paper operations. The detached handle left the valve unable to close, and L&I set the fine at nearly $2,900.

Earlier that week, the Washington Department of Ecology cited NDP for 35 environmental violations tied to the May tank implosion. The immediate test is whether the phased December restart can proceed while those safety matters remain open.