Forisk Research Release: Updates on the U.S. South Pulp & Paper Sector

Significant Mill Closures and Billion Dollar Investments

Forisk Research Release, August 2025 Significant Mill Closures and Billion Dollar Investments: Updates on the U.S. South Pulp and Paper Sector Each quarter, Forisk Consulting compiles data on mill activity though its ongoing tracking of wood-using facilities as part of Forisk’s North American Mill Capacity Database, a database of over 2,300 wood-using mills in North America. This release provides a summary of mill updates from the Q2 2025 edition of the Forisk Research Quarterly.   Last week’s announcement of the upcoming closures of the IP mills in Savannah, GA and Riceboro, GA sent ripples across the industry. The announcement is the latest in a series of closures announced across the U.S. South. “The International Paper closures of mills in Savannah and Riceboro, Georgia represent 3% of pulp capacity in the U.S.,” commented Amanda Lang, President and COO of Forisk Consulting. “These pulp mills, and the IP Riceboro sawmill closure, remove 4.6 million tons of total wood use from Southeast Georgia. This will have a massive impact on that timber basket.”   While the closures are what often show up in the headlines, there have been several announcements about investments over the last quarter as well. Announcements from the pulp and paper sector in the U.S. South are summarized below.   Mill Closures Continue Like last quarter, which included four significant mill closures, this quarter continued the trend of falling wood-using capacity. International Paper announced plans to close its containerboard mills in Savannah, GA and Riceboro, GA by the end of September 2025. Georgia-Pacific completed the closure of its Cedar Springs, GA mill on August 1, 2025.   Investments are Happening Despite the notable closures, several firms are investing in mills in the U.S. South: ST Paper purchased a tissue mill in Barnwell, SC from Cascades and will open in Q3 2025. Green Bay Packaging in Morrilton, AR has chosen a contractor for their $1 billion expansion, which will include a new continuous digester, a new chip mill, and the addition of an onsite debarker and chipper. The investment could more than double the current pulping capacity at Morrilton. Hood Container announced a $119 million two-phase modernization project at the paper mill in St. Francisville, LA. Hood expects to significantly increase manufacturing capacity and feedstock purchases when the project is completed. International Paper announced a $250 million investment to convert the #16 machine at the Riverdale mill in Selma, AL to produce containerboard.     The figure below shows mill announcements in the U.S. South between 2022-2025. According to Forisk Consulting, since 2022, 11 pulp mills in the U.S. South have closed, accounting for approximately 8.2 million tons of lost pulp production capacity and 25 million tons of wood use. These closures reduced pulp production capacity in the U.S. South by 16%. For more information or to subscribe to Forisk's North American Mill Capacity Database, contact: Nick DiLuzio, ndiluzio@forisk.com, 770-725-8447.  About Forisk Consulting: Forisk delivers forecasts and analysis of forest industry markets and timberland investments. Firms participate in Forisk’s research program by subscribing to the Forisk Research Quarterly (FRQ), the Forisk Wood Fiber Review, or the North American Forest Industry Capacity Database; supporting benchmarking studies related to forest operations and mill capacities; and attending educational workshops.   Forisk Consulting | www.forisk.com

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