#United States #Georgia-Pacific #Alabama River Cellulose #cellulose mill #Perdue Hill, Alabama

Georgia-Pacific's Major Investment in Alabama Mill

In a significant move to bolster its production capabilities, Georgia-Pacific has announced an impressive $800 million investment in its Alabama River Cellulose mill located in Perdue Hill, Alabama. This ambitious project is set to not only modernize the mill but also enhance its operational efficiency and expand its production capacity significantly.

Enhancements and Upgrades

Scheduled to commence in the fourth quarter of 2025 and projected for completion by 2027, the project involves extensive upgrades to the facility's existing equipment and processes. Specifically, the investment will facilitate the installation of a state-of-the-art digester, a new pulp dryer, and an efficient power boiler. Moreover, important modifications will be made to the mill's brown stock washing, recausticizing systems, recovery boiler, evaporators, and lime kiln. These enhancements are expected to increase the mill’s production capacity by approximately 300 tons per day, resulting in an impressive output of close to one million tons of fluff and market pulps annually.

The mill's production primarily caters to vital consumer goods such as baby diapers, adult incontinence products, feminine hygiene items, facial tissues, and kitchen towels. As the market for softwood pulp products is projected to grow at an annual rate of 3%, Georgia-Pacific's investment aims to ensure that it meets both current and future demand.

Economic Impact

Beyond production capabilities, this investment plays a critical role in local employment and economic growth. The Alabama River Cellulose mill, through its operations, currently supports more than 3,000 direct and indirect jobs in Monroe County, contributing $188 million in compensation and benefits. Georgia-Pacific has established a strong employment foundation in Alabama, directly employing around 2,400 people across six facilities and creating an economic impact that translates into over 9,060 indirect jobs.

Georgia-Pacific's commitment to the Alabama mill isn't new; since its acquisition in 2010, the company has invested more than $700 million, including an $80 million investment focused on expanding fluff pulp capacity just last year. With the new funding, the facility will have received over $1.5 billion in investments, reinforcing its role as a cornerstone of Georgia-Pacific's cellulose operations.

Commitment to Sustainability

In alignment with modern environmental standards, Georgia-Pacific is also placing emphasis on the plant’s environmental performance. The planned upgrades will strive to reduce water consumption, lower particulate emissions, enhance energy use efficiency, and improve methods for wastewater processing. Furthermore, the investment seeks to capture more valuable byproducts and improve biomass recovery.

State officials have expressed robust support for Georgia-Pacific's ongoing investment. Alabama Governor Kay Ivey has emphasized that this move reflects a strong vote of confidence in the state’s workforce and business climate. Additionally, Ellen McNair, Secretary of the Alabama Department of Commerce, remarked on how these advancements will make the Alabama River Cellulose facility the most technologically advanced softwood pulp mill in the nation.

Community Relations and Future Outlook

The local community's support has played a vital role in Georgia-Pacific's ongoing success. Jeff Vermilyea, vice president of manufacturing for Alabama River Cellulose, highlighted the importance of this local backing and the ongoing collaboration with community partners. Moreover, Judge Sonya Stinson of Monroe County shared her excitement about the project and its implications for future job stability and support in the area.

In summary, Georgia-Pacific's $800 million commitment is poised to transform not only its Alabama River Cellulose mill but also the local economy, reinforcing its dedication not only to quality production but also to sustainability and community engagement.