Georgia-Pacific Announces $800 Million Capital Investment in Alabama River Cellulose Mill

Sept. 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

U.S. DOC Initiates Antidumping Duty and Countervailing Duty Investigations of High Purity Dissolving Pulp from Brazil and Norway

Sept. 8, 2025 - The International Trade Administration (ITA) posted a notice on its website that on September 3, 2025, the U.S. Department of Commerce (Commerce) announced the initiation of antidumping duty (AD) and countervailing duty (CVD) investigations of high purity dissolving pulp from Brazil and Norway.

The U.S. International Trade Commission (ITC) is currently scheduled to issue its preliminary determination on September 26, 2025. If the ITC issues an affirmative preliminary determination, Commerce is scheduled to announce its preliminary determination on November 7, 2025, for the CVD investigation, and on January 21, 2026, for the AD investigation. These deadlines may be extended in accordance with the statute.

The petitioners are Rayonier Advanced Materials, Inc. (Jacksonville, Florida) and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (Washington, DC).

The International Trade Administration, U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements.

SOURCE: International Trade Administration

Celulosa Argentina Files for Bankruptcy after Sales Plunge in First Half 2025

IFPTA editor's note: The following news story is from Ambito, one of Argentina's most widely read economic newspapers. All dollar figures are in Argentine pesos.

Sept. 2, 2025 - Celulosa Argentina, the historic paper mill with over 100 years of history, has entered a critical phase that threatens its continued existence. After months of default, idle plants, and a failed debt restructuring, the board of directors has decided to file for bankruptcy to try to avoid a disorderly outcome.

The latest balance sheet figures leave no room for optimism: the company accumulated losses of $172.634 billion (Argentine pesos), a 44% drop in revenue, a negative EBITDA of $20.146 billion and a net worth of $23.774 billion, which left it in a situation of technical bankruptcy.

Sales Collapse and Plants Paralyzed

The board itself acknowledged in the minutes of the August 29 meeting that "the Company has suffered a significant drop in sales, reaching approximately 52% in the last six months compared to the same period last year." Overall, domestic sales plummeted 32% in tons, while exports increased 104%, albeit with much lower margins.

The company admitted that "operating costs have increased significantly, especially in dollars, and could not be passed on to prices due to the lack of demand and the threat of imports." This combination led to a 17% drop in gross profitability and a 31% drop in operating profit, compared to a year earlier when margins were positive at 25% and 14%.

Due to a lack of liquidity, the company shut down its industrial plants in Capitán Bermúdez (Santa Fe) and Zárate (Buenos Aires), which have remained idle since late July. Meanwhile, its Corrientes subsidiary Forestadora Tapebicuá also halted production indefinitely, affecting more than 500 workers and forcing the provincial government to provide emergency subsidies.

The financial deterioration accelerated in May, when … read the full article on Ambito's website

SOURCE: Ambito

Celulosa Argentina SA has one pulp manufacturing plant and two paper manufacturing plants, located in the towns of Capitán Bermúdez (Santa Fe Province, Argentina) and Zárate (Buenos Aires Province, Argentina). The main products are printing and writing paper, tissue paper, and packaging paper.

International Paper to Sell Global Cellulose Fibers Business for $1.5 Billion; Close Savannah Containerboard Mill

Aug. 21, 2025 - International Paper today announced a series of strategic changes to achieve an advantaged cost position, deliver a superior customer experience and maintain a high relative supply position as part of its ongoing transformation journey.

Agreement to Sell Global Cellulose Fibers Business

International Paper has reached a definitive agreement with American Industrial Partners (AIP) to sell its Global Cellulose Fibers (GCF) business for $1.5 billion, subject to closing adjustments, including the issuance of preferred stock with an aggregate initial liquidation preference of $190 million. The Company previously announced the decision to review strategic alternatives for its GCF business last fall, as part of the Company's strategy to focus on sustainable packaging solutions. The transaction is expected to close by the end of the year, subject to regulatory approvals.

"GCF is a strong business, and I'm pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses," said IP Chief Executive Officer Andy Silvernail. "Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio. These actions, combined with its talented and committed team made it an attractive investment for AIP to enter the pulp market and have positioned GCF for long-term success under new ownership."

"GCF is well-positioned for future growth, supported by its large and sustainable wood basket, durable end markets, industry leading quality and innovation, long-term customer relationships, deeply knowledgeable employees, and well-invested facilities," said Rick Hoffman, Partner at AIP. "We look forward to partnering with GCF Senior Vice President Clay Ellis and the rest of the talented and tenured management team to implement their growth vision."

The GCF business creates safe, high-quality pulp for a wide range of applications like towel and tissue products, diapers, feminine care, incontinence and other personal care products that promote health and wellness. In addition, its specialty pulp serves as a sustainable raw material used in construction materials, paints, coatings and more. GCF generated $2.8 billion in revenue in 2024 and has 3,300 employees globally, with nine manufacturing facilities and eight regional offices.

Strategic Changes to Packaging Solutions Business in North America

International Paper's packaging business in North America has initiated a number of actions to enhance its ability to serve and grow with customers while improving its manufacturing footprint, including:

• Investment of $250 million to convert the #16 machine at the Riverdale mill in Selma, Alabama to produce containerboard
• The permanent closure of the Savannah, Georgia containerboard mill, the Savannah, Georgia packaging facility, Riceboro containerboard mill and Riceboro Timber and Lumber

These changes will impact approximately 1,100 hourly and salaried positions. International Paper is committed to supporting affected employees through this transition. The Company will offer severance packages, along with outplacement assistance for eligible employees, to support them during this transition.

"We understand how deeply these decisions affect our employees, their loved ones, and the surrounding communities," said Tom Hamic, Executive Vice President and President of International Paper's North America Packaging Solutions business. "We are committed to supporting both our employees and customers as we navigate this transition.

"While difficult, these decisions are essential to positioning International Paper for long-term success, enabling us to focus on the geographies, customers, and products where we can create the most value," Hamic added. "Our investment in the Riverdale mill reflects our commitment to delivering high-quality, reliable service while strengthening our advantaged cost position."

The Riverdale conversion is expected to be completed by the third quarter of 2026. The Riceboro and Savannah mills will shut down in phases by the end of September 2025, and the Savannah packaging facility will also cease operations by the end of September. These combined changes will result in a net reduction of the company's annual containerboard capacity by approximately one million tons.

International Paper (NYSE: IP; LSE: IPC) is the global leader in sustainable packaging solutions. With company headquarters in Memphis, Tennessee, USA, and EMEA (Europe, Middle East and Africa) headquarters in London, UK, IP employs more than 65,000 team members and serves customers around the world with operations in more than 30 countries.

SOURCE: International Paper