The $50 million will be spent on revitalizing existing equipment and enhancing "internal infrastructure" at the plant, 1000 W. Mount Pleasant Road, in Zachary, according to a Georgia-Pacific news release.
Georgia-Pacific officials declined to reveal how much the mill's paper towel output would increase following the improvements. However, a company news release said the investment should expand the mill's offerings, such as its Brawny Mega and Tear-A-Square brands, as well as store brands manufactured at the plant.
Initial preparation for the project began earlier this year, but construction is in "full swing," Georgia-Pacific spokesperson Kelly Ferguson said. Work should be done by mid-2023.
Ferguson confirmed the $50 million spend is part of a $108 million project that will include equipment revamps to increase output across the entire mill. The paper towel equipment upgrades are the first part of the $108 million project to be given the go-ahead by Georgia-Pacific leadership.
The investment marks a reversal of fortune for the Port Hudson mill, where Georgia-Pacific shut down a major division in 2019, putting nearly 700 workers out of a job. About 300 employees currently work at the plant, the company said.
"This truly is an investment in our customers and consumers who value the quality of our products," Vivek Joshi, president of Georgia-Pacific's retail tissue, towel and napkin business, said in a statement. "It also allows us to further leverage the many advantages we have, including our breadth of offerings, excellence in manufacturing operations, commitment to quality and focus on research and development to create products that consumers value."
Georgia-Pacific plans to revamp its two paper production lines and add a third one, according to its application for a state industrial tax exemption for the project. Other planned work includes replacing concrete floors and adding a 2,000-square-foot motor control center building.
The Louisiana Board of Commerce and Industry approved Georgia-Pacific's Industrial Tax Exemption Program break for the project in January. It will be worth $1.55 million in its first year, according to Louisiana Economic Development estimates.
The new investment will not create any new permanent jobs, according to LED estimates, but it will create 25 construction jobs. The work also "ensures our ongoing efforts to provide a quality product for our customers and consumers and a good place to work for our employees," Ferguson said in an email.
