Dive Brief:
- Paper product maker First Quality Tissue is establishing a $984 million ultra-premium towel and tissue manufacturing facility in Defiance, Ohio, Gov. Mike DeWine announced last month.
- The 1.6-million-square-foot plant will create more than 400 jobs, with $22.5 million in annual payroll by 2032, according to the release.
- As part of the new plant, the company intends to install two thru-air-dried paper machines at the site, a process that uses hot air to dry the paper and boost production efficiency. The first TAD machine is expected to begin operations in 2028, according to First Quality Tissue’s press release.
Dive Insight:
First Quality Tissue initially announced its TAD expansion plans in August 2024, with the second machine set to come online about 18 months after the first machine begins production. TAD machinery can improve the tissue’s quality and make them more absorbent and bulkier, as well as run at faster speeds to make production more efficient, according to information services firm ResourceWise.
The nearly $1 billion investment is one of several expenditures First Quality Tissue has made in the past year as it addresses rising customer demand. The tissue towel market is expected to grow from $28.1 billion in 2024 to $30.1 billion in 2025, according to a report from market intelligence firm The Business Research Co.
The growth is driven by consumer hygiene awareness, expansion in the hospitality and healthcare sectors, and an increase in environmental sustainability trends, the report stated.
The upcoming Defiance facility is strategically located next to a 1,100-acre site that is close to four major highways, a rail line and two large gas trunk lines. The company doesn’t plan to use all of the land for the project, according to the Defiance County Economic Development website.
First Quality Tissue was established in 1989 and manufactures adult incontinence and baby diapers, as well as feminine products. In May 2023, the company announced plans to spend $418 million to expand its baby diaper and training pants facility in Macon, Georgia. The project is expected to create 600 jobs and increase capacity by 50%, according to the company’s release.
The tissue maker has expanded its portfolio as well. Last month, First Quality acquired Germany-based Henkel’s Retailer Brands business in North America. The segment includes detergents, fabric finishers and dish-washing consumer products and will create a First Quality home care products division, according to the tissue maker’s press release.
Large investment projects have been making their way to Ohio after state lawmakers established a $750 million fund in January 2024 to prepare sites and attract companies.
In January, defense contracting startup Anduril Industries announced plans to build a nearly $1 billion autonomous weapon system facility in Pickaway County. The county’s port authority will receive $86 million to upgrade the infrastructure, $70 million of which will go toward Anduril’s manufacturing site, according to a Feb.13 press release.
