Greif Packaging, a subsidiary of global packaging firm Greif, plans to invest $45 million for upgrades to its semi-chemical medium machine in Amherst County mill in Riverville, Virginia.
Work on the project will include technological improvements to all parts of the plant's original paper machine, such as its drive systems, winding and roll handling capabilities, which will help enhance its quality while lowering costs and increasing capacity.
Greif Paper Packaging general manager Tim Bergwall said the modernization of the company's semi-chemical machine at Riverville represents a critical stage of its 'efficient frontier' strategy in the Virginia mill footprint and is aimed at reducing structural costs and expanding output at this important virgin asset within its portfolio.
"The resulting product enhancements expected from these projects represent another step toward our goal of being the premier medium supplier to our customers," Bergwall added.
Upgrades for the project are expected to result in energy cost cuts throughout the mill by another 10% percent and raise production output by 11%.
The machine improvement work is due to commence on May 2014 and complete by 2015. The project will also involve addition of a shoe press.
The project has secured a performance-based grant worth $350,000 through the Virginia Investment Partnership programme.