G-P Invests $740 Million in Alabama Corrugated, Other Operations in Past Decade

 

Two reports this past week by the Birmingham Business Journal, Birmingham, Ala., USA, highlight how the state of Alabama is becoming a significant focus for recent investments by Georgia-Pacific, Atlanta, Ga. G-P became a subsidiary of Koch Industries in 2005, and since that time the company has invested $740 million dollars in Alabama. In 2014 alone, G-P invested nearly $470 million in the state. 

The largest G-P investment in Alabama this past year was $375 million in Brewton for an energy improvement project at its containerboard mill. This was for the modernization of the mill’s recovery boiler system, which will enable the Brewton operations to be energy self-sufficient. In 2014, $88 million was also invested the Perdue Hill cellulose mill for improvements to its woodyard and fluff pulp line to increase efficiency and improve product quality. Another $6 million was invested at the G-P engineered lumber mill in Thornsby to produce more laminated veneer lumber to meet customer demand. In March of 2015, G-P also acquired the Rocky Creek lumber operations from RoyOMartin in Mexia.

Alabama, with good access to southeastern forests and a lucrative labor reform law that can attract new industry, now ranks third among U.S. states for total employment by Koch subsidiaries, with Koch supporting 2,632 direct jobs and 12,429 total in the state, according to a recent report from the company. Koch gives $247,063,939 in direct compensation to Alabama workers, and $708,879,296 in total compensation. There are currently eight Koch-owned G-P locations in Alabama.

Alabama locations in the building products sector include: Belk–Fayette Lumber, Thorsby–Engineered Wood Products, Monroeville–Engineered Wood Products, and the recently acquired Rocky Creek lumber operation.

Huntsville–corrugated is a packaging facility. The other packaging facility is the Brewton bleached board/containerboard mill. Koch has the cellulose facility in Perdue in addition to Pennington–Naheola Paper, which is technically classified under consumer products.

G-P has also committed $539 million in capital investments to promote growth in Alabama.