Georgia-Pacific announced a new capital project for the company’s Alabama River Cellulose mill in Perdue Hill, AL. 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,” says 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.”

Governor Kay Ivey says, “Georgia-Pacific’s $800 million investment in its Alabama River Cellulose mill represents a powerful vote of confidence in our state’s workforce and business climate. This project not only strengthens one of Monroe County’s cornerstone employers, but it also ensures that Alabama will continue to play a leading role in supplying the materials that go into essential everyday products used around the world.”

“The investments in our mill enables Georgia-Pacific to continue being a safe and reliable local employer,” says Jeff Vermilyea, vice president of manufacturing at Alabama River Cellulose. “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.”