Georgia-Pacific Announces Significant Investments in Advanced Papermaking Technology

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Mar 31, 2010, 07:00 ET

ATLANTA, March 31 /PRNewswire/ -- Georgia-Pacific today announced that it intends to make significant investments, which could total more than $500 million, in an advanced, proprietary tissue-papermaking technology. The company expects this and subsequent investments to further strengthen its commitment to being the leader in tissue, towel and tabletop products.

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The company said it has approved funding for final engineering for two paper machines incorporating the technology. These two paper machines and associated converting equipment will manufacture premium tissue products for the consumer market. Pending final site selection, start-up is expected for 2012.

"We have seen growth in the premium segments of the bath tissue category, largely driven by the award-winning, successful introduction of our three-ply Quilted Northern Ultra Plush® product in 2008," said Kathy Walters, executive vice president of Georgia-Pacific's global consumer products business. "This new investment further reflects our commitment to being an innovation leader to drive further growth in this important segment.

"The advanced technology meets consumers' demanding needs for premium qualities in tissue products – including softness and absorbency – while reducing combinations of fiber use, energy use or water use versus alternative papermaking processes," said Walters.

Added Jim Hannan, chief executive officer and president, "This significant investment should be a clear indication to our customers of Georgia-Pacific's focus on growing our global consumer products business. It also demonstrates our commitment to the global competitiveness of our skilled employees, to our asset base and to the communities where we operate."

Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs more than 40,000 people at approximately 300 locations in North America, South America and Europe. Georgia-Pacific creates long-term value by using resources efficiently to provide innovative products and solutions that meet the needs of customers and society, while operating in a manner that is environmentally and socially responsible and economically sound. The familiar consumer tissue brands of Georgia-Pacific Consumer Products LP include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Mardi Gras®, and Vanity Fair®. Dixie Consumer Products LLC, a Georgia-Pacific company, manufactures the Dixie® brand of tabletop products. For more information, visit www.gp.com.

SOURCE Georgia-Pacific