SOUTH HUTCHINSON, Kan. —  The new tax plan put in place under the Trump administration is benefiting a group of employees in South Hutchinson.

The Lawrence Paper Company (LPC) announced today it will pay a special bonus to each of its 300 employees and invest in new equipment due to the Tax Cuts and Jobs Act that was recently signed into law.

The company will pay a bonus of $500 and invest over $5 million in new equipment. During staff meetings this week in South Hutchinson, and Lawrence, Kansas, along with the plant in Fremont, Nebraska, LPC President Justin Hill Jr. told employees of the company’s plans.

Hill says the most significant long-term benefit will come from the lowering of the tax rates on businesses. He believes it could free up income, which can then be reinvested in businesses or even paid to employees in the form of higher wages.

LPC will invest more than $5 million in new machinery for the Fremont plant. If the Lawrence and South Hutchinson plants near their capacity, Hill says LPC will evaluate whether to expand those plants as well.