Irving Tissue's $600M Georgia Expansion: A Boon for Jobs and Economy

Canada's Irving Tissue is set to invest $600 million in expanding its Macon, Georgia, tissue paper mill, creating 100 new jobs. This move aligns with the company's broader strategy of vertical integration and growth in the North American tissue market. The expansion, which includes a third paper machine, automated warehouse, and new converting lines, is expected to increase the plant's annual capacity by 50%.

The expansion is a significant boost for the local economy and job market. Macon-Bibb County currently has an unemployment rate of around 3.5%, and the new jobs could potentially decrease this rate further. The new hires, ranging from $22 to over $30 per hour, will also boost average wages in the area. Assuming an average wage of $26 per hour, the additional 100 jobs could contribute an estimated $13 million annually to the local economy, driving wage growth and consumer spending.

The expansion will likely increase demand for housing and services in the Macon area. With wages ranging from $45,760 to over $62,400 per year, these jobs could attract new residents, driving up housing demand. Additionally, the new workers will require services such as dining, entertainment, and retail, stimulating growth in these sectors.

The increased production capacity will also have a positive impact on the local supply chain and related businesses in Macon. The additional paper machine and automated warehouse will create a higher demand for raw materials, such as wood pulp, which will be supplied from Irving's pulp mill in Saint John, New Brunswick, and timberland owned in New Brunswick and Maine. This will likely stimulate growth in the timber and pulp industries, creating more jobs and economic activity in these sectors. Furthermore, the new converting lines will require additional equipment and services, providing opportunities for local suppliers and service providers.

Government incentives played a significant role in Irving Tissue's decision to expand in Macon. The company could qualify for $2 million in state income tax credits, at $4,000 per job over five years, provided workers earn at least $35,600 a year. Additionally, Macon-Bibb County could grant property tax breaks on Irving's equipment and property. These incentives aim to encourage the company's expansion and job creation but may also reduce the local government's tax revenue, potentially affecting the budget for public services.

The expansion of Irving Tissue's Macon plant is a testament to the region's economic growth and the company's commitment to sustainable practices. The company's integrated value chain, including pulp and sawmill operations, ensures a sustainable and secure supply of raw materials. The new automated warehouse and converting lines could enhance efficiency and reduce waste, contributing to the company's sustainability goals.

In conclusion, Irving Tissue's $600 million expansion in Macon, Georgia, is a win-win situation for the company and the local economy. The investment in new jobs, increased production capacity, and potential tax incentives will drive economic growth, boost wages, and stimulate related businesses. The expansion also aligns with the company's broader strategy of vertical integration and growth in the North American tissue market, demonstrating its commitment to sustainable practices and a long-term vision.