Big changes are coming to International Paper’s Riegelwood Mill, the company announced Tuesday.
A company investment of $135 million will convert the plant to fluff and softwood pulp production only and will reduce the plant workforce over time, officials said in a news release. The conversion, tentatively planned to begin in the first half of 2016, will reduce the number of mill machines from three to two but will add 400,000 tons of production capacity, with the flexibility to shift between fluff and softwood pulp, officials said.
The plant currently employs 740 people, and company officials do not anticipate job reductions during 2015, plant spokeswoman Kimberly Clewis said Tuesday. There will, however, be a reduction once the conversion takes place, although the company doesn’t have any firm numbers at this point, she said, adding, “We still have to work through the details. We do have a union and will work with the union to minimize impact."
Mill manager Floyd Whitmire, quoted in the release, also said the company hoped to minimize the effect of the workforce downsizing.
“We will have fewer jobs as a result of shutting down one of the machines. However, based on what we know today, there will be no impact to anyone’s job at the Riegelwood Mill this year as a result of the planned conversion,” Whitmire said in the release. “We also are hopeful that we can manage most, if not all, job reductions by utilizing current vacancies, retirements and normal attrition. We have a lot of talent at Riegelwood and are committed to taking steps to reduce the impact of these changes on employees.”
Fluff pulp, with its absorbent properties, is used in diapers and adult incontinence products as well as some feminine care products, Clewis said. Softwood pulp is used in soft paper products such as facial tissues and paper towels, she explained, adding that the market for both fluff pulp is growing worldwide.
“Demand is forecast to grow 3 to 4 percent a year, especially in Asia,” she said, adding that as more of the world’s population has greater discretionary income, there is increasing demand for products that use the pulp.
Currently the plant – located in southeastern Columbus County – operates one pulp machine and two machines that produce paperboard, which finds its way into such consumer products as book and magazine covers, cardstock, paper plates and folding cartons, Clewis said. One of the paperboard machines will be eliminated, and the second will be converted to pulp production.
“Converting the Riegelwood Mill to run 100 percent softwood pulp products best positions us for the future,” Whitmire said in the release.
This is International Paper’s second major capital investment in the Riegelwood Mill in the past two years, including a $40 million investment to optimize the mill’s wood yard operations, the release stated.
“International Paper has continued to invest to improve the long-term competitiveness of the Riegelwood Mill,” Whitmire said. “Today’s announcement is reflective of the company’s commitment and confidence in our Riegelwood Mill team to serve one of the company’s most attractive and growing global markets.”