Sonoco Products Company has announced plans to invest $40 million in modernising and expanding its paperboard manufacturing facility in Richmond, Virginia, increasing production capacity and improving operational efficiency.
Announced on 2 November 2026, the investment will be delivered over the next two years and will introduce upgrades to manufacturing equipment, process control systems and automation technology.
The development is expected to increase annual production capacity by approximately 9,000 tons while improving paperboard quality, consistency and manufacturing performance.
Expanding recycled paperboard production
The Richmond facility is an important part of Sonoco’s integrated uncoated recycled paperboard (URB) manufacturing network. The mill produces paperboard used in the company’s paper can packaging products, alongside lightweight Tan Bending Chip (TBC) grades supplied to a range of industrial and consumer packaging customers. Sonoco, which describes itself as North America’s largest producer of uncoated recycled paperboard, said the investment will strengthen the mill’s ability to meet customer requirements while supporting its long-term manufacturing strategy.
Howard Coker, President and Chief Executive Officer of Sonoco, said the Richmond operation has an established role in supporting the company’s consumer and industrial packaging businesses. The investment is intended to improve product performance, strengthen operating efficiency and provide additional production capacity.
Introducing modern manufacturing technologies
The modernisation programme will be delivered in two phases, with construction expected to begin in early 2027. Phase one will focus on improvements to paperboard formation, thickness profile control, density and cleanliness. These upgrades are intended to enhance product quality and consistency while expanding the mill’s production capabilities.
Phase two, scheduled for completion by the end of 2028, will involve further investment in pulping operations, water systems and automation. The second phase will also include improvements to the working environment for employees. Together, the projects will modernise several stages of the paperboard manufacturing process, supporting more efficient operations and improved product performance.
Maintaining production during construction
Sonoco plans to complete the expansion while minimising disruption to existing manufacturing operations. The company expects the Richmond mill to maintain its current annual production of approximately 120,000 tons throughout construction. This approach is intended to protect continuity of supply for customers while new equipment and production improvements are introduced.
Once completed, the development is expected to provide approximately 9,000 tons of additional annual production capacity. The company said the project forms part of its approach to making targeted manufacturing investments that strengthen efficiency, product quality and its ability to respond to customer demand.
Strengthening Sonoco’s North American manufacturing network
Sonoco’s Industrial Paper Packaging business operates one of North America’s largest recycled paperboard manufacturing networks. The division includes 10 mills and 16 paper machines across the United States and Canada. Together, these facilities produce approximately 1.2 million tons of heavyweight and lightweight TBC paperboard annually, supplying a range of consumer and industrial packaging markets. The Richmond investment will support this wider manufacturing network by increasing production capacity and introducing modern equipment and process technologies.
Investing in long-term industrial performance
Founded in 1899, Sonoco is a global manufacturer of metal and paper packaging products serving consumer and industrial markets. The company reported net sales of $7.5 billion from continuing operations in 2025 and employs approximately 22,000 people across 265 operations in 37 countries. The Richmond modernisation project reflects Sonoco’s continued investment in its manufacturing infrastructure as it seeks to improve efficiency and strengthen its packaging supply chain. With construction expected to begin in early 2027 and the second phase scheduled for completion by the end of 2028, the project will introduce additional capacity while modernising an established US paperboard production facility.
