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Jul 03, 2023

Company planning Waco paper mill takes first bite of $1 billion apple

This video was produced and provided by Graphic Packaging: Graphic Packaging to build a state-of-the-art coated recycled paperboard (CRB) mill in Waco, Texas An Atlanta company spending $1 billion to

This video was produced and provided by Graphic Packaging: Graphic Packaging to build a state-of-the-art coated recycled paperboard (CRB) mill in Waco, Texas

An Atlanta company spending $1 billion to open a high-tech paperboard recycling mill in Waco has started parting with its cash.

It has submitted site plans to the city of Waco and secured a $20 million building permit for a 175,000-square-foot warehouse at 2601 Gateway Blvd. to hold “finished goods,” according to the local Associated General Contractors of America office. At the same site, Graphic Packaging International also will build a 640,000-square-foot mill for turning corrugated cardboard into paperboard for packaging.

Between construction and installing high-tech equipment, Graphic says it will spend $1 billion over three years.

“They’ve provided a civil package that includes what looks like one of their warehouses,” said Bobby Horner, with Waco’s inspection services department, commenting on plans arriving at City Hall. “Cranes and everything are showing up over there. They are not wasting any time.”

Graphic Packaging’s planned Waco plant will house a football-field-sized machine to create new paperboard packing from recycled corrugated cardboard.

Production is expected to start in 2026, and the operation will employ 230 people making $65,000 a year on average, company officials said when they announced the project in February.

McLennan County Judge Scott Felton said city, county and Greater Waco Chamber of Commerce officials are “down to a few details” as they negotiate an incentive package with Graphic Packaging International. Local governments often offer tax breaks, business loans or direct payments from the Waco-McLennan County Economic Development Corp. when wooing businesses.

“We’re still in the midst of negotiations, so I think it would be premature to comment. I would say we’re evaluating a combination of opportunities to support the project,” said Kris Collins, senior vice president for economic development with the Greater Waco Chamber of Commerce.

Graphic Packaging acquired 119 acres in Texas Central Park from the Waco Industrial Foundation, which often sells land for development at less than market value. The site is situated between the Hello Bello diaper plant on Texas Central Parkway and Cat Logistics on Gateway Boulevard.

“I don’t see any problem. Things look good,” Felton said. “I’m excited about the opportunity this investment is going to provide for the community, increasing our tax base and giving people the chance to work in that industry. Our incentives generally are relative to a company’s investment and economic impact in terms of people, jobs and benefits.”

Collins said Graphic Packaging was referred to Waco after approaching state economic development officials. Collins told McLennan County commissioners last week she is seeing more prospects first touching base with the state.

“That’s fine, as long as we get the leads,” Collins said.

Waco officials talk about Graphic Packaging's plans to spend $1 billion on a high-tech paperboard recycling mill in Waco, marking a record investment for economic development here, they said.

The Texas Department of Licensing and Regulation filed a report showing Graphic Packaging’s new warehouse will feature “an internal rail dock, truck docks, offices, mezzanine and storeroom.”

CR Meyer, of Oshkosh, Wisconsin, will design the warehouse.

The company’s $1 billion capital investment outshines other recent announcements in the Waco area, including Amazon’s $250 million investment in a fulfillment center and Envases International’s plans to build a $200 million aluminum can plant.

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