Georgia-Pacific injects US$150 million into Palatka PM4 to secure its tissue production

Georgia-Pacific is executing a highly aggressive recapitalization strategy for its legacy tissue assets in the United States. The company has confirmed an investment of approximately US$150 million to completely rebuild the Number Four paper machine (PM4) at its Palatka, Florida, mill. This move mirrors the recent capital injection at its Wauna facility, signaling a clear mandate to modernize aging infrastructure rather than abandoning established operational hubs.

The Palatka PM4, originally installed in 1980, is a strategic asset dedicated primarily to the production of base paper for the Angel Soft bath tissue brand. After 46 years of continuous operation, the equipment will undergo a comprehensive overhaul. Work on the site has already commenced, with the final commissioning of the rebuilt machine scheduled for the second quarter of 2028.

Upgrading a legacy manufacturing hub

Rather than expanding capacity through greenfield projects, Georgia-Pacific is focusing on maximizing the efficiency and lifespan of its existing footprint. The Palatka mill, which approaches its 80th anniversary, benefits from an integrated pulp supply and established converting infrastructure. By rebuilding PM4 in its original location, the company avoids the logistical and permitting complexities of a new build while securing the long-term viability of the site.

According to Andrew Noble, president of Georgia-Pacific's Consumer Tissue, Towel and Napkins business, the capital deployment reflects a direct commitment to the consumer tissue market. The upgrade is designed to integrate modern automation and safety systems, directly addressing the reliability issues inherent to four-decade-old machinery.

Vin Webster, vice president of manufacturing at the Palatka mill, emphasized that the rebuild will allow the facility to apply current technology more effectively, strengthening its position as an advantaged manufacturer in a highly competitive North American tissue market.

Operational continuity and market impact

The Palatka facility is a cornerstone of Georgia-Pacific's consumer products division, manufacturing household staples that include Quilted Northern, Brawny, and Sparkle, alongside Angel Soft. These brands reach an estimated 60 million households in the United States, demanding strict quality control and uninterrupted supply chains.

The US$150 million allocation will specifically target improvements in operator safety, machine reliability, product quality, and overall productivity. While the rebuild requires taking the machine offline, the long-term operational gains are expected to offset the temporary disruption. This investment, running parallel to similar modernization efforts across the company's network, underscores a broader industry trend: the necessary and capital-intensive transition of late-20th-century paper machines into the digital and highly automated manufacturing standards of 2026.