Georgia-Pacific has announced a significant new capital project at its Alabama River Cellulose mill in Perdue Hill, Alabama. Valued at $800 million, the initiative will modernize, expand, and enhance the mill’s production capabilities.
Scheduled to commence in the fourth quarter of 2025 and conclude in 2027, the project will upgrade key manufacturing equipment, boosting operational efficiency and increasing production by approximately 300 tons per day. Once complete, the mill is expected to produce nearly one million tons of fluff and market pulps annually. Planned upgrades include a new state-of-the-art digester, pulp dryer, and an energy-efficient power boiler, along with improvements to the brown stock washing and recausticizing systems, recovery boiler, evaporators, and lime kiln. These enhancements will make the Alabama River Cellulose mill one of the largest and most technologically advanced softwood pulp facilities in the United States.
Softwood fluff and market pulps play a critical role in producing essential consumer products, including baby diapers, adult incontinence and feminine hygiene products, facial tissue, paper towels, and disposable cups and plates. With softwood pulp demand expected to grow by about 3% annually, Georgia-Pacific aims to meet this increasing need through its investment in the Alabama River Cellulose mill.
Environmental sustainability is also a priority for the company. The planned improvements are designed to reduce water consumption, cut particulate emissions, improve energy efficiency, enhance wastewater treatment, capture valuable byproducts, and optimize biomass recovery and use.
“Since acquiring the Alabama River Cellulose mill in 2010, Georgia-Pacific has invested over $700 million, including an $80 million expansion of fluff pulp capacity in 2022,” said Munir Abdallah, president of GP Cellulose, a Georgia-Pacific subsidiary. “With this new investment, the facility will have received more than $1.5 billion in total. Modernizing the mill demonstrates our commitment to meeting both current and future customer demand for high-quality fluff and market pulps, while positioning our cellulose business for growth in emerging markets.”
Governor Kay Ivey stated, “Georgia-Pacific’s $800 million investment highlights strong confidence in Alabama’s workforce and business environment. This project not only strengthens a key Monroe County employer but also ensures the state continues to be a leading supplier of materials for essential everyday products worldwide.”
Ellen McNair, Secretary of the Alabama Department of Commerce, added, “This transformative project underscores Alabama’s appeal as a hub for advanced manufacturing. With these state-of-the-art upgrades, the Alabama River Cellulose mill will become the nation’s most technologically advanced softwood pulp facility, right here in Monroe County. Georgia-Pacific’s dedication to innovation, sustainability, and workforce development aligns perfectly with our vision for long-term economic growth.”
Jeff Vermilyea, vice president of manufacturing at Alabama River Cellulose, said, “These investments allow Georgia-Pacific to remain a safe and reliable employer locally. We value the support from the community and look forward to continued collaboration with our local partners for years to come.”
Georgia-Pacific employs nearly 2,400 people across six Alabama facilities, providing $238 million in direct wages and benefits. The company’s operations support an additional 9,060 indirect jobs statewide, generating $710 million in labor income. Specifically, the Alabama River Cellulose mill accounts for over 3,000 direct and indirect jobs and $188 million in total compensation. Over the past decade, Georgia-Pacific has invested more than $2.5 billion in capital projects and acquisitions within Alabama.
Judge Sonya Stinson of Monroe County remarked, “Hearing that Georgia-Pacific has approved full funding for this project is incredibly exciting. Knowing that the Alabama River Cellulose mill will continue operations here for decades is truly gratifying. The company not only provides quality jobs but is also a strong supporter of our community. Monroe County is very fortunate to have Georgia-Pacific.”
Click here to know more about GP Cellulose.
Scheduled to commence in the fourth quarter of 2025 and conclude in 2027, the project will upgrade key manufacturing equipment, boosting operational efficiency and increasing production by approximately 300 tons per day. Once complete, the mill is expected to produce nearly one million tons of fluff and market pulps annually. Planned upgrades include a new state-of-the-art digester, pulp dryer, and an energy-efficient power boiler, along with improvements to the brown stock washing and recausticizing systems, recovery boiler, evaporators, and lime kiln. These enhancements will make the Alabama River Cellulose mill one of the largest and most technologically advanced softwood pulp facilities in the United States.
Softwood fluff and market pulps play a critical role in producing essential consumer products, including baby diapers, adult incontinence and feminine hygiene products, facial tissue, paper towels, and disposable cups and plates. With softwood pulp demand expected to grow by about 3% annually, Georgia-Pacific aims to meet this increasing need through its investment in the Alabama River Cellulose mill.
Environmental sustainability is also a priority for the company. The planned improvements are designed to reduce water consumption, cut particulate emissions, improve energy efficiency, enhance wastewater treatment, capture valuable byproducts, and optimize biomass recovery and use.
“Since acquiring the Alabama River Cellulose mill in 2010, Georgia-Pacific has invested over $700 million, including an $80 million expansion of fluff pulp capacity in 2022,” said Munir Abdallah, president of GP Cellulose, a Georgia-Pacific subsidiary. “With this new investment, the facility will have received more than $1.5 billion in total. Modernizing the mill demonstrates our commitment to meeting both current and future customer demand for high-quality fluff and market pulps, while positioning our cellulose business for growth in emerging markets.”
Governor Kay Ivey stated, “Georgia-Pacific’s $800 million investment highlights strong confidence in Alabama’s workforce and business environment. This project not only strengthens a key Monroe County employer but also ensures the state continues to be a leading supplier of materials for essential everyday products worldwide.”
Ellen McNair, Secretary of the Alabama Department of Commerce, added, “This transformative project underscores Alabama’s appeal as a hub for advanced manufacturing. With these state-of-the-art upgrades, the Alabama River Cellulose mill will become the nation’s most technologically advanced softwood pulp facility, right here in Monroe County. Georgia-Pacific’s dedication to innovation, sustainability, and workforce development aligns perfectly with our vision for long-term economic growth.”
Jeff Vermilyea, vice president of manufacturing at Alabama River Cellulose, said, “These investments allow Georgia-Pacific to remain a safe and reliable employer locally. We value the support from the community and look forward to continued collaboration with our local partners for years to come.”
Georgia-Pacific employs nearly 2,400 people across six Alabama facilities, providing $238 million in direct wages and benefits. The company’s operations support an additional 9,060 indirect jobs statewide, generating $710 million in labor income. Specifically, the Alabama River Cellulose mill accounts for over 3,000 direct and indirect jobs and $188 million in total compensation. Over the past decade, Georgia-Pacific has invested more than $2.5 billion in capital projects and acquisitions within Alabama.
Judge Sonya Stinson of Monroe County remarked, “Hearing that Georgia-Pacific has approved full funding for this project is incredibly exciting. Knowing that the Alabama River Cellulose mill will continue operations here for decades is truly gratifying. The company not only provides quality jobs but is also a strong supporter of our community. Monroe County is very fortunate to have Georgia-Pacific.”
Click here to know more about GP Cellulose.