Georgia-Pacific’s $800 Million Investment in Alabama Facility
Georgia-Pacific has announced plans to invest $800 million in its Alabama River cellulose plant. The objective? To upgrade, expand, and enhance production capacity, ultimately transforming the facility into the largest coniferous pulp mill in the U.S.
The project is set to kick off in the last quarter of 2025, with completion aimed for 2027. Improvements will include the upgrade and replacement of essential manufacturing equipment. This should lead to a boost in operational efficiency and an increase in production capacity by about 300 tons per day.
This facility currently produces nearly 1 million tonnes of fluff and market pulp annually, which are crucial for making everyday products like diapers, facial tissues, and paper plates.
As part of this initiative, the installation of advanced digesters, new pulp dryers, and more efficient boilers is planned, along with other upgrades.
According to Georgia-Pacific, the Perdue Hill facility will become one of the most technologically advanced factories in the United States through these enhancements.
“We are excited to affirm our commitment to a diverse range of services,” mentioned Munir Abdallah, president of GP Cellulose, a subsidiary of Georgia-Pacific. “This investment positions our cellulose business to meet the increasing demand from emerging markets.”
Since acquiring the plant in 2010, Georgia-Pacific has invested over $700 million into the Alabama River cellulose mill, including an $80 million investment made in 2022 to enhance fluff pulp capacity, Abdallah noted.
With this new influx of funding, total investments in the facility will surpass $1.5 billion.
Economic Impact
Governor Kay Ivey expressed that this investment will significantly impact rural Monroe County. “The $800 million investment in the Alabama River cellulose plant signifies strong confidence in our workforce and business environment,” she stated.
She added that this project fortifies one of Monroe County’s key employers and ensures Alabama maintains a crucial role in supplying materials for essential products worldwide.
Ellen McNair, secretary of the Alabama Department of Commerce, remarked that Georgia-Pacific’s growth project will energize the state’s important forest products sector. “This transformational investment indicates that Alabama is a smart choice for advanced manufacturing,” she said. “With these cutting-edge upgrades, our cellulose facility will be the nation’s most technically advanced coniferous pulp mill.”
Georgia-Pacific is also focused on enhancing the environmental performance of its operations. The upcoming improvements aim to cut down on water usage, reduce emissions, and improve energy efficiency, wastewater treatment, and by-product recovery.
“Investing in our facilities helps Georgia-Pacific remain a trusted local employer,” said Jeff Vermirie, vice president of manufacturing for Alabama River Cellulose. “We appreciate the support we’ve received and look forward to ongoing collaboration with our community partners.”
Local Workforce and Community Contribution
Currently, Georgia-Pacific operates six facilities in Alabama, employing nearly 2,400 staff and providing $238 million in wages and benefits. Their economic contributions have led to 9,060 indirect jobs across the state, equating to $710 million in labor income.
Specifically, the Alabama River cellulose plant generates over 3,000 direct and indirect jobs and offers $188 million in compensation and benefits.
Over the past decade, Georgia-Pacific has poured more than $2.5 billion into capital projects and acquisitions in Alabama.
Judge Sonya Stinson from Monroe County praised Georgia-Pacific’s commitment to the local area. “We’re thrilled to learn about the full funding approval for this project. It’s reassuring to know that our cellulose plant will be operating in Monroe County for many years to come,” she noted.
She reiterated the importance of the Georgia-Pacific facility, stating it not only provides quality employment but also actively supports the community. “We’re lucky to have Georgia-Pacific in Monroe County.”
