SOFIDEL INVESTS $185 MILLION TO EXPAND ITS CIRCLEVILLE OHIO PLANT

The factory will reach a production capacity of over 200,000 metric tons per year (+50%) thanks to a new Valmet paper mill machine, making it Sofidel's most important production site worldwide.

HORSHAM, Pa., Sept. 13, 2023 /PRNewswire/ -- To meet the growing demand in the U.S., the Sofidel tissue paper group, well-known for its Regina, Nicky and customer brands, is further strengthening its production capacity with a $185 million investment in its integrated plant in Circleville, Ohio.

The project involves the construction of a new building that will house the new Valmet DCT 200 paper mill machine, which will start operation in Q3 2025 with a production capacity of 70,000 metric tons per year.

The Circleville plant, which is already home to two Valmet Advantage NTT paper mill machines, will reach a production capacity of over 200,000 metric tons per year (+50%) and become Sofidel's most important production site globally.

"Last year, we celebrated our first 10 years in the U.S. market: 10 years of development and growth. Thanks in part to the close-knit and capable U.S. team and our excellent relationships with institutions, from the state of Ohio to the local communities that have always supported us, we open our second decade of operations in the U.S. with this investment in the Circleville plant. Today, Sofidel America has production sites in six states, and this operation will enable us to further meet the growing demand from our customers and continue to fuel our growth in this country," said Luigi Lazzareschi, Sofidel CEO.

The Ohio plant was Sofidel's first greenfield investment in the United States. To date, it is Sofidel's most modern and sustainable plant. Located on a 280-acre (110-hectare) site, the plant sits in an area rich in water, gas, and electricity, and is close to a strategic logistics hub for distribution operators, with intermodal transport systems and major urban centers within a few hundred miles.

Sofidel America

Sofidel America is a subsidiary of the Sofidel Group. It was established in 2012 through the acquisition of the Cellynne tissue company and two converting plants in Green Bay (Wisconsin) and Henderson (Nevada) – the latter moved to Las Vegas in 2018. Sofidel America is active in seven states – the original three listed, as well as Oklahoma, Mississippi, Ohio and Pennsylvania. In 2022 the US market accounted for 26.7% of Sofidel's revenues.

SOURCE SOFIDEL

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