PERDUE HILL, Alabama — Georgia-Pacific announced today that it plans to invest $800 million to modernize, expand and streamline the production capabilities of the company’s Alabama River Cellulose mill, making the Monroe County facility the largest softwood pulp mill in the U.S.
Georgia-Pacific said the project, scheduled to begin in the fourth quarter of 2025 and conclude in 2027, will upgrade and replace essential manufacturing equipment at the mill. This is expected to enhance the facility’s operational efficiency and increase its production capacity by about 300 tons per day.
The mill produces close to 1 million tons of fluff and market pulp yearly — material used to make vital consumer goods such as baby diapers, facial tissue, kitchen towels, paper cups and plates and more.
A state-of-the-art digester, new pulp dryer and a more efficient power boiler will be installed as part of the project, along with other modifications and upgrades.
The project will make the Perdue Hill facility one of the most technologically advanced mills of its kind in the U.S., according to Georgia-Pacific
“Modernizing this mill reinforces our commitment to meeting our customers’ current and long-term demand for high-quality fluff and market pulp,” said Munir Abdallah, President of GP Cellulose, a subsidiary of Georgia-Pacific. “The investment also means our cellulose business will be well-positioned to meet the growing needs of emerging markets.”
Since the facility 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, Abdallah said.
With the new funding, the facility will have received more than $1.5 billion in investments from Georgia-Pacific.
‘Transformational investment’
Governor Kay Ivey said the investment project will have a major economic impact on rural Monroe County.
“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,” Governor Ivey said.
“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,” she added.
Ellen McNair, Secretary of the Alabama Department of Commerce, said Georgia-Pacific’s growth project will add momentum to the state’s critically important forest products industry.
“This transformational investment by Georgia-Pacific is a clear signal that Alabama remains a smart, strategic choice for advanced manufacturing,” Secretary McNair said. “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 continued commitment to innovation, sustainability and workforce development aligns perfectly with our goals for long-term economic growth,” she added.
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.
“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.
“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.”
Local impact
Currently, Georgia-Pacific directly employs close to 2,400 employees and operates six facilities in Alabama, providing $238 million in direct wages and benefits. As of this year, the economic impact of the company contributes to 9,060 additional indirect jobs, which translates to $710 million in labor income in the state.
At the local level, the Alabama River Cellulose mill provides more than 3,000 direct and indirect jobs, and $188 million in direct and indirect compensation and benefits.
Georgia-Pacific has invested more than $2.5 billion in capital improvement projects and acquisitions within the state of Alabama over the past decade.
Judge Sonya Stinson, Judge of Probate for Monroe County, Alabama, commented Georgia-Pacific for its commitment to the region.
“To say that I am thrilled to hear that Georgia-Pacific has approved full funding for this project is such an understatement. I will never be able to put into words how grateful I am to know that the Alabama River Cellulose mill will be in operation in Monroe County for decades to come,” she said.
“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.”
