News Summary
Georgia-Pacific’s $800 million investment into its Alabama River Cellulose mill aims to transform the facility into the largest softwood pulp mill in the U.S. The expansion is set to begin in late 2025 and will enhance production capacity by approximately 300 tons per day. The project also emphasizes environmental performance improvements, including reduced water usage and emissions. Since acquiring the mill in 2010, Georgia-Pacific has invested over $700 million, demonstrating a strong commitment to the local economy and job creation.
Perdue Hill, Alabama – Georgia-Pacific is set to invest $800 million into its Alabama River Cellulose mill, marking a significant step towards transforming the facility into the largest softwood pulp mill in the United States. This ambitious project is slated to commence in the fourth quarter of 2025 and aims for completion in 2027.
The modernization and expansion efforts will enhance the mill’s production capacity by approximately 300 tons per day, further building on its current output of close to one million tons of fluff and market pulp annually. These materials are essential for manufacturing a wide range of consumer products including baby diapers, facial tissues, kitchen towels, and paper cups.
The upgrades will feature the installation of several advanced components, including a state-of-the-art digester, a new pulp dryer, and a more efficient power boiler. Additionally, modifications will be implemented in various processes such as brown stock washing and recausticizing systems, streamlining operations and improving overall efficiency.
Georgia-Pacific has stated that the investment not only seeks to bolster production but will also focus on enhancing environmental performance. Plans are in place to reduce water usage, lower particulate emissions, improve energy efficiency, and upgrade wastewater processing capabilities.
Since acquiring the Alabama River Cellulose mill in 2010, Georgia-Pacific has poured over $700 million into the facility. With the new $800 million infusion, the total investments in the site will exceed $1.5 billion, highlighting the company’s commitment to the region.
Employing nearly 2,400 individuals, Georgia-Pacific operates across six facilities in Alabama, contributing $238 million in direct wages and benefits to the local economy. Furthermore, the company’s economic footprint extends to provide about 9,060 additional indirect jobs throughout Alabama, leading to a total of $710 million in labor income statewide.
At a community level, the Alabama River Cellulose mill is a vital economic engine, generating over 3,000 direct and indirect jobs that yield approximately $188 million in compensation and benefits. This substantial job creation underscores the mill’s role in the local economy and highlights the importance of Georgia-Pacific to the area.
The announcement of the significant investment has drawn praise from local and state officials alike. Governor Kay Ivey has recognized the project as a strong indication of confidence in Alabama’s workforce and business environment. This sentiment reflects the state’s commitment to playing an integral role in the global supply chain for essential consumer products.
The investment has been characterized as a transformational signal for Alabama’s advanced manufacturing sector, indicating a future-focused approach to production and environmental stewardship. The emphasis on upgrading technology and infrastructure aligns with industry best practices aimed at sustainable growth and responsible resource management.
Jeff Vermilyea, Vice President of Manufacturing at Alabama River Cellulose, has stated that this project is pivotal for Georgia-Pacific, reinforcing its position as a dependable local employer. The company’s ongoing investment and modernization efforts signal a dedication to ongoing improvements and community support.
Judge Sonya Stinson of Monroe County has expressed gratitude towards Georgia-Pacific for its continued operations in the region, recognizing the positive impact it has had on the local community. The combination of direct employment and the creation of indirect jobs emphasizes the mill’s vital role in supporting the local economy and enhancing community prosperity.
In summary, Georgia-Pacific’s $800 million investment in the Alabama River Cellulose mill represents a significant commitment to advancing the facility’s capabilities, improving environmental performance, and supporting the economic landscape of Alabama. The combined efforts are expected to resonate throughout the community, bringing both immediate benefits and long-term growth potential.
Deeper Dive: News & Info About This Topic
- Made in Alabama: Georgia-Pacific to Invest $800 Million in Alabama River Cellulose Mill
- PR Newswire: Georgia-Pacific Announces $800 Million Capital Investment
- AL.com: Paper Mill Pumping $800 Million into Expansion of Alabama Plant
- Wikipedia: Georgia-Pacific
- Google Search: Georgia-Pacific Alabama River Cellulose mill

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