The U.S. pulp and paper industry is experiencing a new wave of investment, with more than $7.3 billion in active construction projects and an additional $5.5 billion in planned and engineering-stage developments, according to data from Industrial Info Resources.

The combined pipeline of over $12.8 billion highlights continued confidence in tissue production, mill modernization, automation, and sustainable manufacturing capacity across North America.

Ohio Emerges as a Tissue Manufacturing Hotspot

Ohio currently leads U.S. pulp and paper investment activity, driven by two major greenfield tissue mill projects.

First Quality Tissue Invests $940 Million

In Defiance County, Ohio, First Quality Tissue is building a 1.6 million-square-foot tissue manufacturing facility featuring two advanced through-air-dried (TAD) tissue machines.

The project will produce premium bathroom tissue and paper towels for both private-label retailers and First Quality’s own brands. Commercial operations are expected to begin in 2028.

Kimberly-Clark Expands Tissue Capacity

Meanwhile, Kimberly-Clark is constructing a new one-million-square-foot tissue mill elsewhere in Ohio.

The facility will include TAD technology and converting lines supporting major brands such as Kleenex, Scott, and Cottonelle. Startup is expected in late 2026 or early 2027.

Mill Modernization Spending Approaches $1 Billion

Beyond new mills, U.S. producers continue investing heavily in existing facilities.

More than $940 million in modernization and refurbishment projects are currently under construction nationwide.

One of the largest investments comes from Georgia-Pacific, which is upgrading its kraft pulp and fluff pulp mill in Perdue Hill, Alabama.

The project includes:

• Recovery boiler modernization
• Evaporator upgrades
• Lime kiln improvements
• New continuous digester
• New pulp dryer
• New power boiler

The investment aims to improve operational efficiency, reliability, and environmental performance through mid-2027.

Expansion Projects Exceed $1 Billion

Expansion projects at existing mills account for more than $1 billion in current construction spending.

A major example is J.D. Irving Limited’s investment at its Macon, Georgia facility.

The project includes:

• A fully automated warehouse
• New TAD tissue machine
• Capacity enhancements
• Automation upgrades

Industrial Info Resources estimates the investment at approximately $600 million, with completion expected in 2027.

Future Projects Continue to Build Momentum

Looking ahead, additional investments remain in development.

One of the most significant planned projects comes from Sofidel America, which intends to expand its Oklahoma tissue mill with:

• New TAD tissue machine
• Additional converting lines
• Increased production capacity

The project is expected to begin construction later this year.

Industry Outlook

The latest investment data demonstrates that tissue products remain one of the strongest growth segments within the U.S. pulp and paper industry.

At the same time, producers are increasingly focusing on:

• Automation
• Energy efficiency
• Mill modernization
• Capacity optimization
• Sustainable manufacturing

While traditional paper grades continue facing structural challenges, tissue, packaging, and specialty fiber products are attracting substantial capital investment.

Final Thoughts

With $12.8 billion worth of active and planned projects, the U.S. pulp and paper industry continues to evolve through large-scale investments in tissue production, modernization, and advanced manufacturing technologies. As companies expand capacity and upgrade aging assets, the sector is positioning itself for long-term competitiveness in a rapidly changing global fiber market.

Last Updated on 09/06/2026 by Jota Machinery