Sofidel invests in decommissioned U.S. plant and announces multimillion-dollar expansion
A US$200 million project will transform the Duluth facility, creating new jobs and modernizing operations
Sofidel, an Italian company specializing in tissue paper and toilet paper, has taken over a decommissioned plant near the I-35 highway in the United States. The facility, previously used to produce paper for newspapers and magazines, will be revitalized with significant investment from the company.
According to Simone Giacomelli, Sofidel’s integration manager, the decision to invest in Duluth was driven by two key factors: “First, because the facility has a relatively new paper machine. Second, due to the local workforce, which is very committed and dedicated to the plant”.
The Duluth plant, which has changed hands seven times over the years, faced a decline in demand for newspaper and magazine paper due to digitalization. “This market went into decline less than a decade after the original facility was built. Even so, the Duluth plant remained competitive until its closure on July 5, 2020, at the height of the COVID-19 pandemic. That was the final blow to operations as they were before”, said Gary Wargin, Sofidel’s site operations manager.
In October of this year, Sofidel received a US$5 million state incentive to support a US$200 million expansion project. Construction recently began, aiming to transform the plant. “This expansion will create 160 additional jobs, on top of those already at the site. It will also benefit local industries that support the paper sector, such as transportation, logistics, and product shipping”, explained Wargin.
The 600,000-square-foot project will include new facilities for paper conversion and an automated warehouse. “The expansion will include two main aspects. First, we will convert the current paper production into finished products. Second, we will build a fully automated warehouse and shipping facilities directly on-site. This will enable direct shipping to customers from the Duluth plant”, Wargin detailed.
The expansion is expected to be completed by mid-2026. In the meantime, Sofidel has already begun hiring machine operators and a tissue paper conversion operations manager.
