American paper company Sylvamo plans to invest approximately $145m in its two facilities in South Carolina, US, to achieve cost savings and operational efficiency.
At its Eastover mill, Sylvamo is dedicating around $100m to upgrade one of its paper machines by the end of 2026.
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This modernisation will help the machine attain the same standard as the mill’s other machine. The move is expected to increase the machine’s output by an additional 60,000 short tons of uncoated freesheet paper annually.
Meanwhile, approximately $45m will be invested in a new ‘cutsize sheeter’ at the company’s Sumter sheeting plant.
Scheduled to be operational by late 2026, the sheeter will convert large paper rolls into sheets, enhancing the facility’s ability to serve its customers with greater flexibility and at a lower cost.
Sylvamo chair and CEO Jean-Michel Ribiéras said: “We believe investing in our low-cost assets will strengthen our competitive advantage. Eastover is one of the most competitive paper mills in the world, and it will continue to be an important part of our story for years to come.”
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By GlobalDataThe company is also entering into a 20-year partnership to outsource its Eastover woodyard operations, a strategic move that will modernise wood processing, improve reliability, and offer more flexibility at the site.
This change is projected to save Sylvamo roughly $75m in capital expenditure over the next five years.
The Eastover mill, which recently marked its 40th anniversary, stands as one of the key producers of uncoated freesheet in North America.
Employing over 800 individuals, the mill is credited with creating more than 5,000 related jobs in the area. It generates over 90% of its energy needs and is situated near Columbia on the Wateree River.
The Sumter sheeting operation, which employs over 100 people, is located roughly 30 miles from the Eastover mill.
Together, these facilities are responsible for producing paper for printer paper brands such as Hammermill, HP Home & Office, and Williamsburg.
For 2024, Sylvamo reported net sales of $3.8bn.
