International Paper Augments Investment at Riverdale Mill to $552 Million

SEATTLE (Scrap Monster): Memphis, Tennessee-headquartered International Paper has announced that it has almost doubled the investment at its Riverdale, Central Alabama mill from earlier announced $300 million to $552 million.

Initially, the company had announced an investment of $300 million towards conversion of its No.15 paper machine at the mill. The proposed investment was aimed at boosting the mill productivity by enabling the machine to produce high quality whitetop linerboard and containerboard. The planned investment was targeted at raising the mill capacity by additional 450,000 tons.

According to company press release, the additional investment of approximately $250 million will convert a line making uncoated freesheet into linerboard and containerboard, which are currently the products that are in greater demand. The project will be eligible for tax abatements under the terms of Alabama Reinvestment Act. The works as per the original plan is already under progress. The additional investment is likely to extend the project up to end-2019, the company noted. Also, it will further strengthen the company to meet growing demands of its North American customers.

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Commerce Secretary Greg Canfield commented that the project is clear evidence of International Paper’s ongoing commitment to Riverdale mill and its employees. Dallas County Economic Development Authority Executive Director Wayne Vardaman termed the move as a tremendous investment that is sure to bring exemplary benefits to communities.

Meantime, International Paper has been recognized by the Ethisphere Institute as one of the 2018 World’s Most Ethical Companies. This is the twelfth consecutive year that the company has been recognized with the prestigious honor. Also, it is one of only two companies from forestry, paper and packaging industry to be selected for the award.