In a move that has drawn attention across the pulp and paper industry, International Paper (IP) announced the closure of its Georgetown, South Carolina mill in late 2024. The mill, which specialized in fluff pulp production, was a key player in the global supply chain for absorbent hygiene materials. Its closure raises important questions about the evolving dynamics of the fluff pulp market and whether this signals a broader shift for producers and end-users alike.
According to International Paper, the decision was part of a company-wide strategy to streamline operations and focus on more profitable assets. While internal cost and efficiency considerations played a role, industry professionals are questioning if this move also reflects deeper structural changes. These could include moderating demand growth, intensifying global competition, and the emergence of more cost-effective production regions.
Fluff pulp is a specialized type of chemical pulp made from softwood trees, prized for its high absorbency and bulk. It is primarily used in the production of absorbent hygiene products, including:
These products rely on fluff pulp's unique fiber structure to deliver critical performance in absorbency and fluid retention. The hygiene sector, especially in emerging markets, has traditionally driven demand growth for fluff pulp.
The closure of International Paper’s Georgetown mill, which represented approximately 5% of US fluff pulp production, has sparked renewed interest in the underlying drivers of change within the fluff pulp sector. While it might be tempting to view this move as part of a larger market correction due to factors such as oversupply, the data suggests a different story. The shutdown is more accurately seen as a strategic decision tied to cost optimization and shifting corporate priorities rather than a response to excess global capacity.
Contrary to the notion of global oversupply, fluff pulp capacity has remained relatively stable over the past decade. The US continues to dominate production, much as it did 10 years ago. While Latin America and Asia have seen some growth—about 400,000 tons/year and 150,000 tons/year respectively—these increases are modest and have not meaningfully disrupted global pricing or market share. In fact, the production increase in Asia over the entire past decade is only about half the annual output of the Georgetown mill itself.
Instead, the closure underscores a confluence of evolving cost structures and operational realities:
Fluff Pulp Mill Viability by Cost and Technical Age (3Q2024)
According to FisherSolve’s Capacity Trends module, no new fluff pulp mills have been announced anywhere in the world. The only expected change is a forecasted production increase at International Paper’s Riegelwood mill in 2026. This suggests that while total capacity may edge upward in specific locations, there is no sign of a boom in new supply.
In this context, the Georgetown closure appears less like the start of a widespread contraction and more like a strategic pruning of less competitive assets. The industry may be entering a phase of consolidation and selective investment rather than dramatic shifts in overall supply.
As the industry navigates strategic shifts like the Georgetown mill closure, companies across the pulp, paper, and hygiene value chains need reliable, data-driven tools to make informed decisions. ResourceWise’s FisherSolve platform delivers a comprehensive view of global market dynamics—covering production assets, cost structures, sustainability metrics, and long-term capacity trends.
One of the platform’s key capabilities, the Viability Index, flagged Georgetown as a high-risk mill before its closure—based on its cost position and technical age. This level of foresight empowers stakeholders to evaluate asset risk proactively and make smarter investment, sourcing, or divestment decisions.
Additionally, FisherSolve’s Capacity Trends module allows users to track changes in global production. For instance, while no new fluff pulp mills have been announced worldwide, the platform highlights forecasted capacity increases—like the one expected at IP’s Riegelwood mill in 2026—helping users anticipate market direction.
With FisherSolve, companies can:
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