The new owner of Duluth's paper mill is planning a massive expansion that could add 160 new jobs.

Sofidel intends to invest at least $180 million to add a conversion facility and automated warehouse at the tissue paper plant, according to city documents. That number could easily rise to $250 million, said Chad Ronchetti, Duluth's director of planning and economic development.

The company is seeking about $20 million in tax-increment financing from the city to help pay for the project.

"They're hoping to break ground yet this year," Ronchetti said. "The sooner they are fully operational, the better it is for everyone."

Italian papermaker Sofidel bought the mill earlier this year and said at the time it had 80 employees and a capacity of 65,000 metric tons per year.

The planned investment is welcome news for supporters of the mill, which was idled by previous owner Verso in 2020, costing 235 jobs. Verso then sold to ST Paper in 2021, which converted the plant into a tissue maker with a new paper machine that came online last year.

"It took great foresight and a Herculean effort to help make it happen," Ronchetti said. "Partners across the community, across the state, stepped up to get ST Paper in operation and position it for Sofidel to snatch it up."

The expansion would add about a half-million square feet to the mill, including a 150-foot-tall warehouse, and bring employment levels back to pre-pandemic levels.

Sofidel bought Duluth's 37-year-old mill after the tissue paper market had a "significant upturn" in 2023, the company said in January.