Sonoco Invests $40M in Richmond Paperboard Mill
The two-year modernization plan will expand annual production capacity at the Virginia facility by approximately 9,000 tons.
Updated on Nov. 3, 2026 in Consumer Goods
Sonoco Products Company announced a $40 million investment to modernize and expand its Richmond, VA paperboard mill. The project will increase the mill's annual production capacity by approximately 9,000 tons.
Why it matters
The Richmond mill supplies paperboard for Sonoco's paper can packaging and serves a diverse customer base. The expansion strengthens production capacity at a facility located in the Richmond area.
The $40 million investment would raise the Richmond mill's annual output of approximately 120,000 tons by about 9,000 tons. The mill is one of 10 Industrial Paper Packaging mills Sonoco operates across the United States and Canada.
The players
Sonoco Products Company
Sonoco Products Company is the largest producer of uncoated recycled paperboard in North America.
The details
The first phase will focus on enhancing sheet formation, profile control, density and cleanliness while expanding production capabilities. A second phase will invest in pulping operations, water systems, automation and employee experience improvements.
Timeline
Over the next two years: Sonoco invests $40 million modernizing and expanding the Richmond mill.
Early 2027: Construction on the Richmond mill project is expected to begin.
End of 2028: The second project phase is targeted for completion.
Market Landscape
Sonoco's Industrial Paper Packaging segment operates 10 mills and 16 paper machines across the United States and Canada, producing approximately 1.2 million tons of paperboard annually. The Richmond investment expands capacity within that network rather than adding a new site.
The expansion increases paperboard supply capacity for Sonoco's packaging business, which may affect the availability of products made from the Richmond mill's output. Consumers are unlikely to see direct price changes from this capital project alone.
The takeaway
Capital investments in existing mills, such as this $40 million Richmond project, can expand output without building new facilities. Watch for construction milestones beginning in early 2027.
What happens next
Construction on the Richmond mill project is expected to begin in early 2027, with the second phase targeted for completion by the end of 2028.
Further reading
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