The first phase of the project will focus on enhancing sheet formation, profile control, density and cleanliness while expanding the Richmond mill's production capabilities.
Nov. 3, 2026 - Sonoco, the largest producer of uncoated recycled paperboard (URB) in North America, announced plans to invest $40 million over the next two years to modernize and expand production of its Richmond, Virginia paperboard mill.
According to Sonoco, the investment will enhance the mill's manufacturing capabilities, improve product quality and operating efficiency and increase annual production capacity by approximately 9,000 tons.
The company explained that the Richmond mill is a strategic asset within Sonoco's integrated URB system, supplying paperboard used in Sonoco's iconic paper can packaging and producing lightweight Tan Bending Chip (TBC) grades for a diverse customer base.
"Richmond has long played an important role in supporting our Consumer and Industrial packaging businesses with quality paperboard that delivers value to our customers," said Howard Coker, Sonoco's President and CEO. "This investment demonstrates our commitment to strengthening Sonoco's paperboard system through targeted, high-return projects that enhance efficiency, improve product performance and positions us to meet growing customer demand."
Construction is expected to begin in early 2027. The first phase of the project will focus on enhancing sheet formation, profile control, density and cleanliness while expanding the mill's production capabilities. A second phase, targeted for completion by the end of 2028, will include investment in pulping operations, water systems, automation and employee experience improvements.
Sonoco noted that the project will be executed with minimal production disruption, allowing the mill to maintain its current annual output of approximately 120,000 tons throughout construction.
Sonoco's Industrial Paper Packaging segment is North America's largest producer of URB, operating 10 mills and 16 paper machines across the United States and Canada. Together, these facilities produce approximately 1.2 million tons of high-quality heavyweight and lightweight TBC paperboard annually, supporting a broad range of packaging applications and end markets.
Founded in 1899, Sonoco (NYSE: SON) is a global leader in value-added, sustainable metal and paper consumer and industrial packaging. Sonoco had net sales of $7.5 billion from continuing operations in 2025 and has approximately 22,000 employees working in 265 operations in 37 countries, serving some of the world's best-known brands.
SOURCE: Sonoco Products Company