Georgia Pulp and Paper Mill Closures Cause $2.9B Economic Hit, Thousands of Jobs at Risk
Paper Recycling | 2026-01-08 11:18:15
Georgia-Pacific’s decision to shut its Cedar Springs mill earlier this year removed more than 500 jobs from one of the state’s poorest areas.
By Paul Ploumis
SEATTLE (Scrap Monster): Georgia’s pulp and paper sector is undergoing a rapid contraction as mill shutdowns by major producers International Paper and Georgia-Pacific ripple across the state economy. Over a span of several months, five facilities have closed or signaled closure, triggering widespread job losses and an estimated USD 2.9 billion reduction in economic activity.
The disruption stretches well beyond individual plants. Communities tied to forestry, logistics, and port operations have seen employment fall, while shrinking tax revenues are straining budgets for schools, healthcare systems, and local governments, particularly in rural counties.
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Georgia-Pacific’s decision to shut its Cedar Springs mill earlier this year removed more than 500 jobs from one of the state’s poorest areas. That move was followed by International Paper’s plan to close two Georgia operations, including a long-running Savannah mill, putting roughly 1,100 additional positions at risk. Economic assessments indicate that in southwest Georgia alone, the loss of a single mill can erase about USD 182 million annually from regional output.
Industry observers cite weaker paper demand, higher energy and labor costs, global competition, and corporate restructuring, while policymakers explore diversification into mass timber and advanced bio-based forest products nationwide.
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Frequently Asked Questions
- Which companies are responsible for the mill shutdowns in Georgia?
Major producers International Paper and Georgia-Pacific are leading the closures.
- How many jobs have been lost due to the closures?
Over 1,600 jobs are affected, including more than 500 at Georgia-Pacific’s Cedar Springs mill and 1,100 at International Paper’s Savannah and other operations.
- What is the estimated economic impact of the closures?
The state’s economy has seen an estimated USD 2.9 billion reduction in activity, with local regions like southwest Georgia losing up to USD 182 million annually per mill.
