HANCOCK, Vt. (AP) – A Hancock plywood mill that had been idle since December is under new ownership.

The new owners, working under the name Vermont Plywood LLC, recently closed a deal for the former Chesapeake Hardwood plant, the largest employer in the towns of Granville, Hancock and Rochester.

The mill makes plywood for furniture, cabinets and wall paneling.

Financing for the purchase included a $640,000 loan from the Vermont Economic Development Authority, a $730,000 Community Development Block Grant and a $150,000 tax credit from the Vermont Economic Progress Council.

Announced in December, receipt of the block grant has been delayed by “a couple of technical issues,” said Vermont Plywood CEO Dan Davis.

“We are hoping that will be dealt with in the next 30 days,” he said. “It’s not if, it’s just when.”

The plant’s previous owners, Virginia-based Chesapeake Hardwood Products, said in 2002 that it was pulling out of the Vermont market but that it would try to find a buyer for the mill. Davis, who has a background in the forest products industry, became interested in the mill in early 2003.

Davis said Chesapeake executives were more interested in consolidating operations in Virginia than staying open in Hancock, which led to a lack of investment in the mill.

“They just took from it,” said Davis, who lives in West Burke. “We’re going to turn that around.”

Davis and his partners, Abe Guillen of South Burlington and Bob and Eric Starr, owners of a North Troy trucking company, hope to upgrade the plant’s equipment and expand its product lines. The group also plans to employ almost 50 workers and add 20 more when it starts a second shift.

AP-ES-05-30-04 1035EDT