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Georgia-Pacific Announces $800 Million Capital Investment in Alabama River Cellulose MillSept. 10, 2025 - Georgia-Pacific today announced a new capital project for the company's Alabama River Cellulose mill in Perdue Hill, Alabama. The $800 million investment will modernize, expand and streamline the facility's production capabilities. The project, scheduled to begin in the fourth quarter of 2025 and conclude in 2027, will enhance and expand essential manufacturing equipment. This is expected to augment the mill's operational efficiency and increase its production capacity by about 300 tons per day. Close to one million tons of fluff and market pulps will be produced yearly at the mill. A state-of-the-art digester, new pulp dryer and a more efficient power boiler will be installed. Modifications and upgrades will also be made to the brown stock washing and recausticizing systems, recovery boiler, evaporators and lime kiln. Once the project is completed, the Alabama River Cellulose mill will be the largest and one of the most technologically advanced softwood pulp mills in the U.S. Softwood fluff and market pulps are used to make vital consumer goods such as baby diapers, adult incontinence and feminine hygiene products, facial tissue, kitchen towels, paper cups and plates and more. Demand for softwood pulp products is projected to grow by 3% annually over the next several years, and Georgia-Pacific seeks to meet that need through its investments at Alabama River Cellulose. Georgia-Pacific is also invested in improving the plant's environmental performance. The planned improvements aim to reduce water usage, lower particulate emissions, make energy use more efficient, improve wastewater processing, capture more valuable byproducts and improve biomass recovery and utilization. "Since it was acquired in 2010, Georgia-Pacific has invested more than $700 million in the Alabama River Cellulose mill, including an $80 million investment to expand fluff pulp capacity in 2022," said Munir Abdallah, president of GP Cellulose, a subsidiary of Georgia-Pacific. "Combined with the new funding, the facility will have received more than $1.5 billion in investments. "Modernizing this mill reinforces our commitment to meeting our customers' current and long-term demand for high-quality fluff and market pulps. The investment also means our cellulose business will be well-positioned to meet the growing needs of emerging markets," Abdallah added. Georgia-Pacific directly employs close to 2,400 employees and operates six facilities in Alabama, providing $238 million in direct wages and benefits. As of this year, the economic impact of the company contributes to 9,060 additional indirect jobs, which translates to $710 million in labor income in the state. At the local level, the Alabama River Cellulose mill provides more than 3,000 direct and indirect jobs, and $188 million in direct and indirect compensation and benefits. Georgia-Pacific has invested more than $2.5 billion in capital improvement projects and acquisitions within the state of Alabama over the past decade. Jeff Vermilyea, vice president of manufacturing at Alabama River Cellulose, noted, "The investments in our mill enables Georgia-Pacific to continue being a safe and reliable local employer. We appreciate the local support we've received over the years, and we look forward to the continued collaboration with our community partners for a long time to come." Headquartered in Zug, Switzerland, GP Cellulose operates state-of-the-art pulp mills in the southeastern United States and has sales offices strategically located in Switzerland,the United States, Uruguay and Hong Kong. The company's brands include Golden Isles® fluff and Golden Isles CO®. SOURCE: Georgia-Pacific |
