Sofidel Pledges $775M Oklahoma Expansion with TAD Machine, 1M Sq Ft Warehouse
Sofidel will invest $775 million to install a 75,000-metric-ton Valmet TAD machine and 1M sq ft of automated warehouse space at its Inola, Oklahoma site. The project, coming online in Q2 2028, follows Clearwater Paper and Royal Paper acquisitions and boosts capacity in a region generating 50% of revenue.
1. Expansion Investment and Facilities
Sofidel is committing $775 million to its Inola, Oklahoma integrated site by installing a 75,000-metric-ton Valmet Through-Air-Dried paper machine and adding 1,000,000 square feet of new warehouse and production space. The enhancements include expanded pulp and parent reel storage to support increased output.
2. Automated Intralogistics
The project features a fully automated finished goods warehouse with 100,000 pallet positions using E80 Group technology. Laser-guided vehicles will move parent reels from the paper machine to storage, while an automated loading system links directly to the warehouse to streamline end-to-end logistics.
3. North American Growth and Acquisitions
North America now drives 50% of Sofidel's total revenue, reflecting its rise to the fourth-largest tissue producer in the region over the past decade. Key moves include acquiring Clearwater Paper's tissue division and four Royal Paper facilities across multiple states to bolster market share.
4. Timeline and Competitive Impact
The new TAD machine is expected to start operations in Q2 2028, positioning Sofidel to ramp up U.S. supply against established players. The capacity and automation upgrades may intensify pricing competition and pressure margins for incumbents such as Kimberly-Clark.