Corrugated shipping containers manufacturer Green Bay Packaging has commenced construction on a new paper mill in Wisconsin, US.

Green Bay Packaging will invest $500m in the new mill, which is set to replace the company’s existing recycled paper mill.

$475m of the total amount will be invested in the construction, which is set to be completed in three years.

The remaining $25m will be allocated for the expansion of Green Bay Packaging’s shipping container division as part of the project.

“It’s important that we continue to work with businesses who want to stay and thrive in Wisconsin.”

Wisconsin Governor Scott Walker said: “This new investment shows their continued commitment to Wisconsin and our families because it is expected to preserve more than 1,400 jobs and create 200 new ones statewide.

“It’s important that we continue to work with businesses who want to stay and thrive in Wisconsin.”

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Green Bay Packaging is working with local businesses to carry out the design, construction, and installation of equipment into the new plant.

The company expects to make the mill fully operational in 2021.

Green Bay Packaging president and CEO Will Kress said: “We are proud to officially begin construction of our new, state-of-the-art paper mill in the city where our company was founded over 85 years ago.

“This new facility is the result of the continued hard work and success of our dedicated employees and loyal customers.”

For the new facility, the company has secured up to $60m in state income tax credits over 12 years from the Wisconsin Economic Development (WEDC).