Sylvamo announces investments in two South Carolina facilities

Sylvamo (SLVM) announced major investments at its two South Carolina facilities. The company plans to invest approximately $145M in high-return projects to reduce costs and significantly enhance the capabilities at its mill in Eastover, South Carolina. The investments come on the heels of the mill’s 40th anniversary. Sylvamo will invest approximately $100M to speed up one of its paper machines by the end of 2026, modernizing it to the same world class level as the mill’s other machine. The investment will enable the machine to produce approximately 60,000 additional short tons of uncoated freesheet annually. The company will also invest roughly $45M for a new replacement sheeter at its Sumter, South Carolina, sheeting plant. The state-of-the-art cutsize sheeter, which converts large rolls of paper from the mill into sheets, will lower costs and add flexibility to service customers when it’s online by late 2026. Sylvamo is also entering a 20-year partnership to outsource its Eastover woodyard operations. Modernization will enable more efficient, reliable, cost-effective wood processing and additional flexibility. It will also allow the company to avoid approximately $75M in capital spending over the next five years.