Sonoco Invests $40 Million to Expand Recycled Paperboard Production in Virginia

Photo Credit: Sonoco

Sonoco Products Company has announced plans to invest $40 million over the next two years to modernize and expand its uncoated recycled paperboard (URB) mill in Richmond, Virginia. The project is expected to increase annual production capacity by approximately 9,000 tons while improving manufacturing efficiency and product quality.

The investment will be carried out in two phases. Construction is expected to begin in early 2027, with the first phase focusing on sheet formation, profile control, density and cleanliness. A second phase, scheduled for completion by the end of 2028, will upgrade pulping operations, water systems and automation.

The Richmond facility currently produces approximately 120,000 tons of paperboard annually. Sonoco expects the mill to maintain this production level throughout construction, with work planned to minimize disruptions to ongoing operations. Its paperboard is used in the company's paper can packaging and lightweight Tan Bending Chip (TBC) products, which serve a range of industrial and consumer packaging applications.

Sonoco operates 10 paperboard mills and 16 paper machines across the United States and Canada, producing approximately 1.2 million tons of heavyweight and lightweight TBC paperboard annually. The Richmond investment forms part of the company's broader efforts to improve manufacturing capabilities and meet customer demand across its recycled paperboard business.

The additional capacity, although relatively modest compared with Sonoco's overall North American production, will expand the output of an existing recycled fiber facility. Improvements to pulping and water systems are also important for processing recovered paper efficiently and maintaining the quality required for downstream packaging applications. By upgrading existing infrastructure rather than relying solely on new production facilities, Sonoco is taking a phased approach to increasing its recycled paperboard capacity while keeping the Richmond mill operational.

Source: Sonoco Products Company

SUNSHINE Spotlight: Sonoco's investment highlights continued capital spending in North America's recycled fiber processing sector. Upgrades to pulping systems and production equipment can improve the efficiency and quality of recovered paper utilization, supporting the supply of recycled materials for packaging applications.