Active U.S. Pulp & Paper Project Construction Adds Up to $7.3 Billion

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

The Pulp & Paper Industry is on the move in the U.S., accounting for more than $7.3 billion in current construction.

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Big Spending

Industrial Info Resources data find $7.3 billion worth of Pulp & Pulp construction projects underway in the U.S. and another $5.5 billion worth in the planning and engineering stages, although not all of these will move forward as planned.

Ohio Leads Investment with Tissue Mills

In regard to active construction, Ohio emerges as a leading destination for current Pulp & Paper Industry development, thanks largely to two grassroot tissue mills. In Defiance County, Ohio, First Quality Tissue LLC is establishing an approximately 1.6 million-square-foot tissue mill with two thru-air-dried (TAD) tissue machines that will churn out high-quality bathroom tissue and paper towel products. First Quality manufactures goods for store retail brands and also offers its own lines. The company's Defiance tissue mill will join two other First Quality tissue mills in the U.S. in South Carolina and Pennsylvania.

About 200 miles east of Defiance, on the other side of the state, Kimberly-Clark Corporation is underway with another grassroot tissue mill of about 1 million square feet and featuring the usual equipment, including TAD machines and converting lines. Kimberly-Clark tissue products include such well-known brands as Kleenex, Scott, Cottonelle and others.

Industrial Info Resources has been tracking both projects since 2024. The Kimberly-Clark project was the first to break ground in 2025 and is expected to begin operations in late 2026 or early 2027, while work on First Quality's $940 million construction investment in Defiance started later, with the aim to have the mill up and running in 2028. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Pulp, Paper & Wood Project Database can learn more by viewing the reports on the First Quality and Kimberly-Clark projects in Ohio.

Modernization & Refurbishment Projects

Current modernization and refurbishment projects at existing pulp and paper mills account for than $940 million in active construction. One of the leading projects in this area comes from paper leader Georgia-Pacific LLC, which last year launched a modernization project at its kraft market and fluff pulp mill in Perdue Hill, Alabama, located about 80 miles inland from Mobile. Georgia Pacific is modernizing existing equipment such as the recovery boiler, evaporators and lime kiln to enhance efficiency and reduce emissions. In addition, the company is constructing a new continuous digester, pulp dryer and power boiler. Construction is expected to last until mid-2027. Subscribers can learn more by viewing the project report.

Two other modernization/refurbishment projects are underway in Michigan, joining another Georgia-Pacific revitalization project at a mill in Camas, Washington.

Expansion Projects

Expansion projects at U.S. pulp and paper mills also account for a substantial amount of active investments, adding up to more than $1 billion in current construction. The largest of these expansion projects comes from J.D. Irving Limited, which is constructing a fully automated warehouse and adding a new TAD machine amongst other improvements at its mill in Macon, Georgia. Industrial Info Resources pegs the investment at about $600 million and expects the project to be completed in mid-2027 after about two years of construction. Subscribers can click here to learn more about the project.

On the Horizon

Another expansion project represents one of the largest Pulp & Paper projects planned to kick off in the future--this one expected to break ground later this year at Sofidel America's mill in Inola, Oklahoma. A new TAD machine and converting lines will be added to the mill.

Industrial Info Resources data find more than $3.7 billion worth of other U.S. pulp and paper planned for the future, with leading investment destinations outside Oklahoma including Colorado and South Carolina.

Key Takeaways

• Industrial Info Resources data find $7.3 billion worth of Pulp & Pulp construction projects underway in the U.S. and another $5.5 billion worth in the planning and engineering stages.
• Ohio emerges as spending leader, thanks largely to active construction of two grassroot tissue mills.
• Expansion projects underway at existing U.S. pulp and paper plants add up to more than $1 billion in spending.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).