CHESTERFIELD, Virginia (From the Chesterfield Observer) -- The top executive for a $2 billion proposed paper mill in eastern Chesterfield County has suddenly left his position.

Jerry Zhiyuan Peng has departed as chief executive officer for Chinese-based Tranlin Inc., according to a company press statement.

"Effective immediately, Dong (Donald) Lan is serving as acting CEO for Tranlin, Inc. (also known as Vastly), following the departure of Jerry Peng. Mr. Lan is president of Tranlin Company, Ltd. and has served in various capacities for the Shandong Tranlin Paper Company, Ltd.," the company said in an emailed statement.

The company said that it is pressing ahead with the Chesterfield project, which would be one of the largest foreign investments in the state and is expected to employ 2,000 people.

According to the company: "Work continues on our production facility in Chesterfield County. We are working closely with local and state officials on necessary steps to move us closer to construction of our facility."

Peng was instrumental in steering the planned paper mill, which is expected to make paper products in an environmentally clean way, to Chesterfield.

A former investment banker with Goldman Sachs and Morgan Stanley, Peng attended the Darden School of Business at the University of Virginia in the early 2000s. While at U.Va., he met Jim Cheng, who later became Virginia's Secretary of Commerce and Trade under former Gov. Robert F. McDonnell.

Years later, Peng was searching for a site for Shandong Tranlin, a major Chinese paper maker, when he reconnected with Cheng, who led him to Chesterfield.

The project was announced with great fanfare in 2014 but has since run into delays, the company has said, due to struggles obtaining permits for the project. The delays have also led to the company's decision to defer receiving millions in state grants.

Tranlin is expected to build the paper plant on 850 acres of land near Willis Road, along the James River. A county economic development official said earlier this year that Tranlin could begin construction this summer. The plant is expected to be fully operational by 2020.

Garrett Hart, head of the Chesterfield Economic Development Authority, said last month that the company is expected to apply for a site plan permit with the county in May or June, with possible approval coming by mid-summer.

If that happens, Hart said, construction on the first phase of the project - a "converting" facility - should begin soon after.

The facility will take paper rolls imported from China and convert them into consumer paper products, such as paper towels, to be sold in the United States.

Plans have been to build a large-scale mill that will use modern processes that will convert waste from regional farm fields into pulp.

Hart could not be reached for comment on Peng's departure.