The former Knight-Celotex plant in Danville, Virginia, is to reopen under new ownership, according to a report by the Danville Register and Bee.

The company was purchased by WR Meadows Inc, of Hampshire, Illinois, after it filed for bankruptcy in June.

The newspaper said only the Danville plant will be reopened under a new WR Meadows subsidiary called Blue Ridge Fiberboard Inc, and when fully operational will employ 88 people.

WR Meadows reportedly received a grant of up to US$300,000 from the Virginia Tobacco Commission to reopen the plant.