Sonoco allocates US$40M to scale Richmond recycled paperboard output

USA – Sonoco Products Company will inject US$40 million into its Richmond, Virginia paperboard operations over two years, a project designed to lift annual output by approximately 9,000 tonnes and modernise the mill’s processing capabilities.

Rather than halting operations for a full rebuild, Sonoco will stage the engineering works in two distinct phases to minimise downtime. 

The first stage, beginning in early 2027, targets sheet formation, profile control, density and cleanliness. 

The second phase, concluding by the end of 2028, focuses on pulping operations, water systems, automation and workforce facilities. 

This sequential approach ensures the facility continues to meet its existing 105,000-tonne baseline output while progressively scaling toward a new 120,000-tonne capacity goal.

Richmond Mill Anchors Recycled Paperboard Supply

The Richmond plant is a critical node within Sonoco’s integrated uncoated recycled paperboard network, supplying material for the group’s paper can packaging and producing lightweight tan bending chip grades for external buyers. 

The broader North American uncoated recycled paperboard division operates ten mills and 16 paper machines across the US and Canada, generating approximately 1.2 million tonnes of heavyweight and lightweight paperboard annually for diverse packaging applications.

Upgrading the Richmond facility strengthens the supply of recycled fibre-based materials used in food, beverage and industrial packaging formats.

Targeted Capital Aims for High Returns

Howard Coker, president and chief executive officer, said Richmond had long played an important role in supporting the company’s consumer and industrial packaging businesses with quality paperboard. 

He noted that the investment demonstrated Sonoco’s commitment to strengthening its paperboard system through targeted, high-return projects that enhanced efficiency and improved product performance. 

Coker added that the new capabilities would improve quality and consistency while increasing capacity to meet growing customer demand and support long-term growth.

Fibre Packaging Demand Drives Capacity Expansion

The investment aligns with rising demand for fibre-based packaging as brands seek alternatives to plastic in food and consumer goods. 

Recycled paperboard offers a lower-carbon footprint compared to virgin fibre and provides a recyclable substrate for cans, cartons and protective packaging. 

By expanding capacity and improving technical processing standards, Sonoco positions itself to capture market share in segments transitioning toward sustainable packaging solutions, while ensuring reliable supply for its integrated converting operations.

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