Packaging Corporation of America broke ground on a large facility expansion at its Valdosta paper mill Tuesday.

Joining PCA during the groundbreaking was the Valdosta-Lowndes County Industrial Authority.

The project includes a new recovery boiler, which will replace three boilers built in 1953, as well as a turbine generator and paper machine drying efficiency improvements. The new equipment is reportedly pollution-controlled, and a large percentage of it produces self-sustained, green energy.

“The result is that this will be the greenest mill in the U.S. and possibly the least costly to operate,” said PCA Chairman and Chief Executive Officer Paul Stecko. “This mill will become the mill of the future instead of the mill from the past.”

Stecko said that the renovations come after many years and several attempts to maintain a well-productive mill in a cost-efficient manner, which was difficult since the boilers ran on oil.

“When the recession hit, however, two things changed, and we used them to our advantage,” Stecko said. “The costs for equipment to operate the mill was lowered and green energy was pushed. … we capitalized on the economic conditions, so we could get the best return on our investment.”

Through the new boilers, PCA was able to eliminate the use of fossil fuel and run the boilers on renewable energy, Stecko explained.

“The diligence of the people in this community and everyone who made this possible made the difference,” he said.

Valdosta-Lowndes County Industrial Authority Executive Director Brad Lofton said this project is one of the largest investments in Lowndes County.

During the specialized construction phase of the project, approximately 300 construction workers will be hired, with a payroll of $75 to $100 million, said PCA’s Valdosta mill manager, David Carmon. This will generate an ancillary benefit of approximately $370,000 to the community, he said.

Incentives awarded by the industrial authority for this project include a turning lane on the road where the mill is located, two acres of paving and $250,000 in cash.

The project is expected to be complete within two years.

“This large project is evidence of the authority’s refocus on our existing industry,” said Gary Minchew, chairman of the industrial authority. “We are protecting a plant that has been here for decades, and we’re protecting more than 300 well-paying jobs.”

Minchew added that about 100 contractors will “make a living off of the expansion.”

“This is a big announcement for the authority, PCA and our entire community,” Minchew said.

PCA is the fifth largest producer of containerboard and corrugated packaging products in the U.S. PCA operates four paper mills and 68 corrugated product plants in 26 states.