DAYTON, Ohio (From news reports) -- A European manufacturer of recycled paper for corrugated board, which already has a packaging factory in Hamilton, is exploring building a new paper mill in Dayton that could create more than 200 jobs.

However, the city of Dayton does not permit paper or pulp manufacturing operations, and the project likely would need zoning code changes to move forward.

Trotwood's city manager has already voiced opposition to the proposed project, saying it could produce odors and pollution that hurt the quality of life of neighbors who live near the potential site.

Paper mill proposal

Saica Group -- a Spain-based company that opened a packaging facility in Hamilton in 2022 -- has submitted a zoning code text amendment application that asks the city of Dayton to modify its zoning regulations.

Saica is considering building and operating a recycled paper mill facility at the northeast corner of Little Richmond and Olive roads in northwest Dayton, just south of Trotwood, that could employ about 230 full-time workers, say documents submitted to the city. The site has recently been used for agricultural purposes.

"If Saica were to construct a recycled paper manufacturing facility in Dayton, we estimate the cost of construction to be about $600 million," said a Saica company spokesperson.

Saica is asking the city to approve a zoning code amendment that would separate paper recycling from the city's prohibition on all paper and pulp manufacturing.

The company says it makes sense for Dayton to have a prohibition on pulp mills that process raw timber.

But the company says recycled paper product manufacturing facilities have completely different processes that have a much smaller environmental impact.

Saica said these kinds of facilities are already located in densely populated areas across the U.S.

"Recycled paper product facilities do not use the noxious chemicals found at pulp mills, nor do they have the raw material storage requirements of such an operation," says Saica in a proposal it submitted to the city. "Modern recycled paper product facilities do not present the odor or water use issues of some pulp mills. Because of the advanced technology used at recycled paper product facilities, it is not uncommon for them to be located in or near urban population centers."

Pulp and paper mills can produce unpleasant smells and pollution.

The proposed Dayton facility would feature much heavier industrial uses than the packaging plant in Hamilton.

The project likely would be more akin to the Pratt Industries paper mill in Wapakoneta, Ohio.

Saica says it has recycled paper production facilities in Zaragoza, Spain, and in Manchester in the United Kingdom.

The U.K. facility has a water and effluent treatment plant, a power plant, paper machine processing areas, warehouse space and outdoor areas for raw material storage.

The city of Dayton's current zoning code for business park districts likely would allow a facility like what Saica already has in Hamilton.

Saica said it is interested in Dayton because of its proximity to its other U.S. properties in Hamilton and Indiana, plus it's a good location from a logistics standpoint.

The company said Dayton is well suited to address its workforce needs.

"Should Dayton become home to a Saica recycled paper products manufacturing facility, close proximity to an urban center of Dayton's size would give Saica access to the raw materials it needs for operations, such as recyclable paper and old corrugated cardboard containers," a company spokesperson said. "Finding a site that satisfies all of the above requirements can be quite difficult."

The spokesperson said the company understands that local residents will have questions about its intentions, especially people who live near the potential project site.

The company is hosting a public forum at 6 p.m. Thursday, Dec. 5, at the West Branch Dayton Metro Library at 300 Abbey Ave. in Dayton to discuss the potential project.