International Paper to Invest $52 Million in Efficiency Projects at Bogalusa Mill in Louisiana

The modernization program would enhance the paper mill's efficiency by upgrading the recovery boiler system, along with filtration, condenser and acid system enhancements in the papermaking process.

Jan. 26, 2021 - Gov. John Bel Edwards and International Paper Bogalusa Mill Manager Bernie Chascin on Jan. 21 announced IP's plans to invest up to $52.2 million in capital to increase the efficiency of the Bogalusa mill in Louisiana.

Through the project, International Paper plans to retain the mill's 492 direct jobs that provide an average annual salary of more than $86,000, plus benefits. In Bogalusa, IP operates a paper mill and an associated corrugated box plant. The modernization program would enhance the paper mill's efficiency by upgrading the recovery boiler system, along with filtration, condenser and acid system enhancements in the papermaking process.

"We congratulate International Paper for improving the competitiveness of its Bogalusa Mill and for investing in the future of IP employees in Louisiana," Gov. Edwards said. "This commitment to Bogalusa and Washington Parish represents a significant project win for our entire state and reinforces the great strength of Louisiana's forest products sector."

The latest project plan would bring International Paper's investment in capital upgrades at the Bogalusa Mill to $487 million since the company purchased the Washington Parish site in a 2012 acquisition of Temple-Inland Inc.

"Our planned investment represents the mill's ongoing focus on maintaining safe and reliable operations, producing essential products that meet the needs of our customers and providing good jobs to the region," said Chascin, the Bogalusa Mill manager. "We are grateful for the support of Louisiana leaders and our community partners who play an important role in our success. The plentiful fiber resources and hardworking people of Louisiana have made doing business here a worthwhile investment for over a century, and that is why we continue to invest today."

Louisiana Economic Development began formal discussions about the Bogalusa Mill project plan with International Paper in March 2020. To secure the project, the State of Louisiana offered a competitive incentive package that includes a $500,000 Modernization Tax Credit, and the company also is expected to utilize the Industrial Tax Exemption Program.

International Paper maintains significant operations across Louisiana. Beyond the Bogalusa Mill and box plant, IP maintains container plant operations in Springhill; a preprint and coatings plant along with a regional fiber-supply procurement office in Shreveport; a containerboard mill in Mansfield; a containerboard mill in Campti; and a bulk plant in Lafayette.

SOURCE: Office of the Governor, John Bel Edwards