International Paper announced plans to expand fluff pulp production at its Riegelwood N.C. Mill with an investment of $135 million.
This investment will convert the mill to 100 percent fluff and softwood pulp production, adding an incremental 400,000 tons of capacity, with ongoing flexibility to shift between the two products. When the conversion is complete, the company will have the capability to produce up to 1.4 million tons annually of high-quality fluff.
The new fluff pulp capacity is expected to ramp up mid-year 2016.
As a result of the Riegelwood Mill conversion to 100 percent fluff and softwood pulp, the company will reduce its coated paperboard capacity by 350,000 tons, sell the Carolina® brand to MeadWestvaco (MWV), and focus the business on supplying customer demand in the food service and packaging markets. The sale of the Carolina business, which represents the majority of the coated paperboard volume reduction, is expected to close April 30, 2015. The sale captures the brand's value, supports International Paper's plans to expand fluff pulp production at Riegelwood and streamlines and strengthens its coated paperboard business.
|Company Name||International Paper|
|Location||Riegelwood, North Carolina|
|Type||Expand Fluff Pulp Capacity|
|Estimated Cost||$135 million|
|Capacity||400,000 tons Of Capacity|