Georgia-Pacific announces $800 million investment in Alabama River Cellulose mill

Georgia-Pacific has announced a new $800 million capital project to modernize, expand, and optimize the capacity of its Alabama River Cellulose mill in Perdue Hill, Alabama, United States. The initiative, scheduled to begin in the fourth quarter of 2025 and be completed in 2027, is expected to raise annual production to approximately 1 million tons of fluff and market pulp, increasing the facility’s capacity by roughly 300 tons per day.

The project includes the installation of a state-of-the-art digester, a new pulp dryer, a more efficient power boiler, as well as upgrades to washing systems, brown stock washing and recausticizing systems, recovery boiler, evaporators and lime kiln. Once completed, the mill will become the largest and one of the most technologically advanced pulp facilities in the country.

The pulp produced will be used in essential goods such as diapers, adult and feminine hygiene products, paper towels, disposable cups, and plates. Global demand for softwood pulp is expected to grow 3% annually, and the company aims to meet this growing market with the new investment.

The plan also includes environmental improvements, such as lower water consumption, reduced emissions, more efficient energy use, enhanced effluent treatment, and increased biomass utilization. “Since it was acquired in 2010, Georgia-Pacific has invested more than $700 million in the Alabama River Cellulose mill. Modernizing this mill reinforces our commitment to meeting our customers’ current and long-term demand for high-quality fluff and market pulps”, said Munir Abdallah, President of GP Cellulose.

Local authorities highlighted the impact of the announcement. Governor Kay Ivey stated: “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”. Ellen McNair, Alabama Secretary of Commerce, added: “With these cutting-edge upgrades, the Alabama River Cellulose facility will become the most technologically advanced softwood pulp mill in the nation — right here in Monroe County”.

Georgia-Pacific’s economic impact in Alabama is significant: the company directly employs 2,400 people, operates six facilities, and generates $238 million annually in direct salaries and benefits. Including indirect effects, the company supports over 9,000 jobs and $710 million in labor income in the state.

“The investments in our mill enables Georgia-Pacific to continue being a safe and reliable local employer”, said Jeff Vermilyea, Vice President of Manufacturing at Alabama River Cellulose. Judge Sonya Stinson emphasized the company’s community role: “Georgia-Pacific not only provides quality jobs here in our county but is also a huge community supporter as well. We are very blessed to have them here in Monroe County”.