New-Build U.S. Paper Mills Aimed at Tissue Products, Packaging

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

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Summary

New U.S. packaging and tissue mills account for nearly $4 billion in current construction spending, with even more on the books for the future.

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Two Solid Segments

Although demand from either sector isn't growing at a particularly rapid rate, the packaging and tissue sectors represent the stable bedrocks at the moment for the U.S. Pulp & Paper Industry. New-build mill activity demonstrates this perfectly, as virtually all of the grassroot paper mills presently under construction in the U.S. are aimed at tissue and packaging products.

Current U.S. Tissue Construction

Industrial Info Resources data show current U.S. construction of grassroot tissue mills adds up to more than $2.2 billion in investment. The largest of these projects comes from First Quality Enterprises, which manufactures its own Panda toilet paper and Plenty paper towels in addition to being a major manufacturer for store brands and private labels. After more than a year in planning, First Quality got the ball rolling on a grassroot tissue mill in Defiance, Ohio, earlier this year. The mill will include two thru-air-dried (TAD) tissue machines, each capable of produce approximately 60,000-70,000 metric tons per year. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Kimberly-Clark has been underway with a similar grassroot construction project since 2025 about 200 miles to the east in Warren, Ohio, with construction expected to begin winding down toward the end of this year. In Montgomery County, Texas, Mexico's Grupo Corporativo Papelera is putting the finishing touches on a new three-machine tissue mill with seven converting lines.

Packaging & Boxes

The paper packaging segment chimes in with a substantial mill addition in the form of Green Bay Packaging Incorporated's "Project Powerpack" linerboard mill addition in central Arkansas, a new recycled linerboard mill that comes with major modifications to the recovery and biomass boilers in the powerhouse, along with a new electric generator and other equipment.

International Paper Company (IPC) is wrapping up a new corrugated box plant in Waterloo, Iowa, but this comes as the company plans to complete the closure of an older box facility in Carrollton, Texas, by the end of this year. IPC also is at work on a sustainable packaging mill in Brandon, Mississippi.

Future U.S. Grassroot Mill Construction

A look at the Industrial Info Resources Global Market Intelligence (GMI) Project Database for future grassroot mill construction confirms the tissue-packaging dominance, with packaging taking the lion's share of an anticipated $1.7 billion in future new-build construction with new packaging mills accounting for around $824 million in anticipated construction investments. Tissue mills bring around $675 million in planned U.S. grassroot construction. The balance of new-build construction within the U.S. paper sector comes from warehousing and distribution projects, including one from Kimberly-Clark at its new Ohio tissue mill.

Key Takeaways

• Construction of U.S. packaging and tissue mills is bringing about $4 billion in current investments, with another $1.5 billion in development.
• New-build paper construction is dominated by tissue and packaging products.
• Green Bay Packaging Incorporated is spending around $1 billion on its "Project Powerpack" linerboard mill in Morrilton, Arkansas.

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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).