IP Announces $300 Million Investment at Riverdale Mill

SEATTLE (Scrap Monster): Memphis, Tennessee-headquartered International Paper has announced plans to invest nearly $300 million in its Riverdale mill in the City of Selma, Alabama. The proposed investment is aimed to empower the company to meet the growing market demand for its industrial packaging solutions. The announcement was made Friday at the company headquarters.

According to International Paper press release, the company plans to convert its No.15 paper machine to produce high quality whitetop linerboard and containerboard. It must be noted that the machine currently produces uncoated freesheet. The press release further confirmed that the other machine at the mill will continue to produce uncoated imaging paper products as usual.

The conversion process is expected to take around 12 months and is likely to finish by mid-2019. Upon completion, the machine will add 450,000 tons of annual capacity. Furthermore, the machine will be flexible to shift between containerboards. The Riverdale mill will continue to remain as a prominent supplier of uncoated freesheet in North America. However, the machine conversion works will reduce the annual capacity of uncoated freesheet by 235,000 tons.

Mike Amick, Jr., senior vice president, International Paper stated that the proposed major capital investment will help the company to reposition Riverdale’s No.15 paper machine to serve its growing packaging business. Also, the investment is expected to contribute towards optimization of its North American Papers business. Tim Nicholls, senior vice president hoped that the machine conversion will help to meet the growing demands of its customers, by focusing more on box business, domestic and export containerboard and specialty grades.

Meantime, the company noted that the conversion is still in the planning phase and could not assure addition of new employees. Arthur McLean, communications manager of Riverdale mill said that he doesn’t expect addition of any new full-time position at this point. However, the conversion works may require the company to engage a few contractors, thereby generating temporary jobs in the region. Incidentally, the IP’s Riverdale Mill employs nearly 750 employees.

The paper machine conversion is considered to be part of company’s strategic plans to realign its business portfolio to cater to market needs. Recently, the company had announced that it has completed sale of its food service business in China including two plants and a workforce of nearly 200 people.

International Paper is a leading producer of renewable fiber-based packaging, pulp and paper products with manufacturing facilities in North America, Latin America, Europe, North Africa and Russia.