Creating Largest Softwood Pulp Facility in the U.S.
PERDUE HILL, AL — September 18, 2025 — Georgia-Pacific, a global leader in paper and pulp manufacturing, has announced a transformative $800 million investment to modernize and expand its Alabama River Cellulose mill in Monroe County, Alabama. The project will make the Perdue Hill facility the largest softwood pulp mill in the United States, significantly boosting production capacity and operational efficiency.
Scheduled to begin in Q4 2025 and conclude in 2027, the expansion will include the installation of a state-of-the-art digester, new pulp dryer, and a high-efficiency power boiler, along with other critical upgrades. These enhancements are expected to increase daily production by 300 tons, supporting the growing demand for fluff and market pulp used in everyday consumer products such as baby diapers, facial tissue, paper towels, and disposable tableware.
“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 Georgia-Pacific subsidiary. “This investment also positions our cellulose business to serve emerging markets with greater agility and innovation.”
A Decade of Strategic Investment in Alabama
Since acquiring the Alabama River Cellulose mill in 2010, Georgia-Pacific has invested more than $700 million in the facility, including an $80 million expansion in 2022 to increase fluff pulp capacity. With this latest commitment, total investment in the site will exceed $1.5 billion, underscoring Georgia-Pacific’s long-term confidence in Alabama’s workforce and business climate.
“Georgia-Pacific’s $800 million investment represents a powerful vote of confidence in our state,” said Governor Kay Ivey. “This project strengthens one of Monroe County’s cornerstone employers and ensures Alabama remains a leader in supplying essential materials for global consumer goods.”
Economic Impact and Job Creation
Georgia-Pacific currently operates six facilities in Alabama, employing nearly 2,400 people and contributing $238 million in direct wages and benefits. The company’s statewide economic footprint supports more than 9,000 indirect jobs, generating $710 million in labor income. Locally, the Alabama River Cellulose mill supports over 3,000 direct and indirect jobs, with $188 million in total compensation and benefits.
“This transformational investment is a clear signal that Alabama remains a smart, strategic choice for advanced manufacturing,” said Ellen McNair, Secretary of the Alabama Department of Commerce. “Georgia-Pacific’s commitment to innovation, sustainability, and workforce development aligns perfectly with our goals for long-term economic growth.”
Advancing Sustainability and Environmental Performance
In addition to increasing production, the expansion will significantly enhance the mill’s environmental performance. Planned improvements include:
- Reduced water usage
- Lower particulate emissions
- More efficient energy utilization
- Enhanced wastewater processing
- Improved biomass recovery and utilization
- Capture of valuable byproducts
“These upgrades allow us to continue being a safe and reliable employer while improving our environmental footprint,” said Jeff Vermilyea, VP of Manufacturing at Alabama River Cellulose. “We’re grateful for the ongoing support from our community partners and look forward to continued collaboration.”
Community Support and Long-Term Commitment
Georgia-Pacific’s presence in Monroe County has been a cornerstone of the local economy and community development. The company’s investment not only secures the future of the mill but also reinforces its role as a committed corporate citizen.
“Georgia-Pacific provides quality jobs and is a tremendous community supporter,” said Judge Sonya Stinson, Probate Judge of Monroe County. “We are incredibly grateful for their continued investment and the long-term stability this project brings to our region.”
About Georgia-Pacific
Georgia-Pacific is one of the world’s leading manufacturers of tissue, pulp, packaging, building products, and related chemicals. Headquartered in Atlanta, Georgia, the company operates more than 150 facilities and employs tens of thousands of people across North America.
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