Following a year of major structural changes, Clearwater Paper is strengthening its position as one of North America’s leading independent suppliers of coated paperboard.
Through a significant divestiture and a targeted acquisition, the company is now focused on expanding capacity, improving operational efficiency, and developing new sustainable grades for converters.
In July 2024, Clearwater Paper announced the sale of its tissue division to Sofidel America Corporation for approximately US$1.06 billion. According to the company, proceeds from the transaction will be used to reduce debt and reinvest in its paperboard operations, reinforcing its financial stability and long-term growth prospects.
Earlier that same year, Clearwater expanded its manufacturing network by acquiring Graphic Packaging International’s coated paperboard mill in Augusta, Georgia, for roughly US$700 million. The transaction, finalized on May 1, 2024, added nearly 600,000 tons of annual capacity and increased Clearwater’s total output of Solid Bleached Sulfate (SBS) paperboard to about 1.4 million tons.
With mills in Lewiston (Idaho), Arkansas City (Arkansas), and Augusta (Georgia), the company now operates a nationwide network capable of reliably supplying converters across North America.
Unlike integrated producers that both manufacture and convert paperboard, Clearwater Paper focuses solely on supplying converters. This independent model, the company says, allows it to concentrate resources on quality, efficiency, and innovation.
In the third quarter of 2024, Clearwater reported approximately 314,000 tons of paperboard sales—an increase of 67% compared with the previous year—driven by the Augusta acquisition and stronger demand.
The company is also advancing product development initiatives, including compostable foodservice grades, lightweight options for folding cartons, and plastic-free barrier coatings designed to improve recyclability.
On the operational side, Clearwater is targeting US$30–40 million in cost reductions in 2025 and expects synergies of US$40–50 million by 2026, supported by network optimization and efficiency improvements.
For converters, this transition offers several benefits: expanded supply capacity through modern assets, a broader portfolio of sustainable materials, and a more robust financial foundation.
By divesting non-core activities and investing heavily in high-quality paperboard production, Clearwater Paper is positioning itself as a stable, growth-oriented partner for independent converters across North America.
Sources:
Clearwater Paper Corporation – Press Releases (February 2024; July 2024)
Clearwater Paper Corporation – Q1 2025 Financial Presentation
Q4 Capital – Investor Reports (2025)
