Georgia-Pacific Announces Closure of Emporia Plywood Mill

News Summary

Georgia-Pacific has declared the permanent closure of its plywood mill in Emporia, impacting around 550 employees. The decision is tied to ongoing challenges in the plywood market, including housing affordability and declining home sales. As part of a strategic shift, the company aims to adjust production capacity to meet demand. While this marks a setback for the Emporia facility, Georgia-Pacific continues to commit to sustainability efforts at its other mills. The closure highlights challenges faced by the manufacturing sector and the plywood industry in particular.

Emporia, Virginia – Georgia-Pacific has announced the permanent closure of its plywood mill located in Emporia, effective May 1, 2025. This decision will directly impact approximately 550 employees at the facility. Normal operations will cease at the plant on the closure date, with the site slated for complete shutdown by July 1, 2025.

The decision to close the mill has been attributed to several factors affecting the plywood market. Georgia-Pacific cites ongoing housing affordability challenges and a significant decline in existing home sales, which is currently at a 30-year low, as critical influences on their business. Many plywood products are typically utilized in home repair and remodeling projects that often arise when properties change ownership.

In response to these market conditions, Georgia-Pacific is adjusting its plywood production capacity to better align with current demand. This reduction is part of a broader strategy aimed at streamlining operations and focusing on business areas that show more potential for growth.

The Emporia mill’s closure is part of a larger context within Georgia-Pacific’s operations. The company also operates the Savannah River Mill located in Effingham County, Georgia, a facility established in 1986 that employs more than 900 individuals. This mill specializes in producing tissue, towel, and napkin products for both household use and restaurants, and as of now, no job reductions have been reported at this site.

In addition to the closure news, Georgia-Pacific has made strides in sustainability initiatives. The Savannah River Mill recently began accepting polyethylene (PE)-coated paper cups in its mixed paper stock for recycling. This marks the third facility under Georgia-Pacific’s umbrella to initiate this recycling program, alongside their mills in Green Bay, Wisconsin, and Muskogee, Oklahoma. The acceptance of these cups allows for the reuse of fibers to create tissue and towel products, contributing to waste reduction.

Georgia-Pacific has partnered with the Foodservice Packaging Institute and the NextGen Consortium to promote and expand their recycling efforts. The company has emphasized its commitment to reducing resource consumption and enhancing recycling capabilities, responding to historical challenges where PE coatings and residual materials impeded the recycling of single-use paper cups. Successful trials conducted by the company have demonstrated effective recovery of usable fiber from these PE-coated cups.

Furthermore, Georgia-Pacific is exploring innovations in packaging by conducting trials for next-generation paper cups made from biobased materials that are recyclable or compostable. The Savannah River Mill is recognized for housing five of the world’s twelve largest tissue paper machines and operates on a wildlife habitat that supports various local species, showcasing the company’s dedication to environmental stewardship.

In recent developments, Georgia-Pacific made a significant financial investment of $14 million into upgrading their plywood mill in Prosperity, South Carolina. This investment aims to improve boiler efficiency and lessen the environmental impact of their production processes, reflecting the company’s ongoing commitment to sustainability amid changing market dynamics.

The closure of the Emporia plywood mill serves as a stark reminder of the challenges currently facing the manufacturing sector, particularly in the plywood industry. As Georgia-Pacific navigates these challenges, adjustments made to its operational strategies will likely continue to shape the landscape of the industry in the coming years.

Deeper Dive: News & Info About This Topic

• Savannah Business Journal: Georgia-Pacific Closure
• Recycling Today: Georgia-Pacific Accepts Paper Cups
• WSAV: Confirmed Fire in Savannah
• Recycling Today: GP Juno Technology Innovation
• CSRWire: Georgia-Pacific and Recycling Operations
• Wikipedia: Georgia-Pacific