Sonoco Products Company is putting $40 million into its Richmond paperboard mill over the next two years, a modernization project the company says will add roughly 9,000 tons of annual production capacity without shutting the plant down. Construction is set to begin in early 2027 and will roll out in two phases, with the mill expected to keep churning out its current annual output of about 120,000 tons the entire time.
What the Upgrade Covers
According to a company announcement, the first phase of construction will focus on enhancing sheet formation, profile control, density and cleanliness at the mill while expanding its production capabilities. The second phase, targeted for completion by the end of 2028, will tackle pulping operations, water systems, automation and improvements aimed at the employee experience. Sonoco says the project is designed to cause minimal disruption to existing production even as crews work through both stages.
The Richmond mill plays a specific role in Sonoco's broader paperboard business, supplying material used in the company's paper can packaging while also producing lightweight Tan Bending Chip grades sold to outside customers, StreetInsider reports. That dual purpose, feeding both Sonoco's own packaging lines and the external market, is part of why the company is betting on the Richmond facility rather than building elsewhere.
CEO Points to Customer Demand
Sonoco President and CEO Howard Coker framed the investment as a targeted bet on efficiency rather than a broad expansion push. The company says Coker's comments tie the project to enhancing efficiency, improving product performance and positioning the mill to meet growing customer demand, all through what Sonoco describes as targeted, high-return projects within its paperboard system.
The Richmond project fits into a much larger operation. Sonoco's Industrial Paper Packaging segment runs 10 mills and 16 paper machines across the United States and Canada, and those facilities together produce approximately 1.2 million tons of heavyweight and lightweight TBC paperboard each year, the same announcement notes.
A Larger Pattern at Sonoco's Mills
This isn't the first time Sonoco has poured tens of millions into retooling an aging paperboard operation. The company previously committed $83 million to convert its Hartsville, South Carolina corrugated medium machine into a recycled paperboard machine with 180,000 tons of annual capacity, according to Recycling Today. That project, known as Project Horizon, was projected to cut electricity consumption and greenhouse gas emissions across Sonoco's U.S. and Canada mill system by 16 percent each, while trimming total mill water usage by 25 percent.
Sonoco said at the time that the Hartsville overhaul was meant to secure the long-term viability of that complex and push its recycled paperboard mill system into the top quartile of cost performance nationally. Whether the Richmond project carries similar sustainability targets has not been detailed in the company's announcement, but the comparison underscores a pattern of Sonoco funneling capital into upgrading existing mills rather than building new ones from scratch.
For now, the company's public statements lay out the scope, cost and timeline of the Richmond project but stop short of detailing a full project budget breakdown or any effects on mill staffing. Construction is expected to begin in early 2027, with the second phase targeted for completion by the end of 2028.
