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Sonoco Invests $40 Million to Expand Richmond Recycled Paperboard Mill
Sonoco Products Company plans to invest $40 million in its Richmond, Virginia, recycled paperboard mill, adding approximately 9,000 tons of annual production capacity while improving manufacturing efficiency and product quality.
Key Points
- Investment: $40 million over approximately two years.
- Additional capacity: Approximately 9,000 tons annually.
- Construction: Scheduled to begin in early 2027, with completion targeted by the end of 2028.
- Current production: Approximately 120,000 tons annually, expected to continue during construction.
SEATTLE (Scrap Monster): Sonoco Products Company (NYSE: SON) has announced a $40 million investment to modernize and expand uncoated recycled paperboard (URB) production at its Richmond, Virginia, mill.
The project is expected to improve operating efficiency, strengthen product quality and increase annual production capacity by approximately 9,000 tons.
The Richmond facility supplies paperboard for Sonoco's paper-based can packaging operations and manufactures lightweight Tan Bending Chip (TBC) grades for industrial customers.
ScrapMonster Edge: Capacity Growth Without a Major Production Shutdown
Sonoco expects to add approximately 9,000 tons of annual capacity while maintaining the Richmond mill's existing output of about 120,000 tons per year during construction.
The investment also targets sheet consistency, cleanliness, pulping and automation, making improved product performance an important part of the project alongside additional capacity.
Industry takeaway: For recovered-paper suppliers and packaging manufacturers, the project represents a planned increase in recycled paperboard manufacturing capability without a major interruption to existing supply. However, Sonoco has not quantified the potential increase in recovered-fiber purchases or disclosed specific efficiency savings.
Two-Phase Modernization to Continue Through 2028
Construction is scheduled to begin in early 2027. The first phase will focus on improving sheet formation, profile control, board density and cleanliness, alongside broader production capability upgrades.
The second phase, targeted for completion by the end of 2028, will address pulping operations, water management systems, automation and workplace improvements.
Sonoco plans to carry out the work with minimal production disruption, maintaining approximately 120,000 tons of annual output during the construction period.
Investment Strengthens Sonoco's North American Paperboard Network
The Richmond mill forms part of Sonoco's integrated recycled paperboard manufacturing network, which supports its consumer and industrial packaging businesses.
Sonoco operates 10 URB mills and 16 paper machines across the United States and Canada, with combined annual production of approximately 1.2 million tons.
The Richmond investment is intended to improve product consistency, strengthen manufacturing performance and support demand for recycled fiber-based packaging.
