International Paper (IP) has broken ground on a new packaging facility in Rankin County, Mississippi, US.

The project centres on a 468,000ft² corrugated packaging plant to be built on an 80-acre site in the East Metro Center in Brandon.

Company executives were joined at the event by state and local officials, as well as customers, project participants and community representatives.

The investment in the greenfield site will total $225m.

The plant will be situated fewer than ten miles from International Paper’s current box plant in Richland and is intended to add production and service capacity in the Mid-South region.

IP group vice-president Keith Townsend said: "This ground-breaking represents an important step forward for International Paper, our customers, and the communities we serve across the Mid-South.

"The Brandon facility will strengthen our manufacturing network with modern capabilities designed to improve safety, reliability, and operational performance while positioning us to support long-term growth and deliver even greater value to our customers."

Building work is scheduled to start next month, with the facility due to begin operating in the fourth quarter of 2027.

Staff at the existing Richland site are expected to move to the new plant when construction is complete.

The company added that the plant is expected to use updated systems in manufacturing safety, automation and operating efficiency.

Mississippi governor Tate Reeves commented: “Exactly two months ago, we announced International Paper's $225m investment. Today, we're breaking ground on their new facility. It's another example of Mississippi's 'insane execution speed' and how much momentum our state has. When great companies want to move fast and build big, they come to Mississippi."

Earlier this month, IP acquired Delmarva Corrugated Packaging, a facility in Dover, Delaware, US.

The company said the deal fits its plan to “maximise” value for customers, shareholders, and employees.