Cascades will invest in its Wagram, North Carolina site, and install five new state-of-the-art converting lines and modernise its four existing lines.
Commissioning of the new converting lines is expected to begin in April 2019 and will be finalised in the first quarter of 2020.
The company was unable to officially confirm which converting machinery supplier was involved in the investment at this time.
Sixty-six full time employees will also be hired to operate the equipment.
The Wagram plant produces hand towels, paper towels, bathroom tissue and napkins marketed under the Cascades PRO brand, which serves the AfH markets.
The plant will be largely supplied by the Cascades tissue plant located 30 miles away in Rockingham.
Upon completion of the $58m project, the Wagram plant converting capacity will increase from 5.3m cases per year to close to 15m cases per year, resulting in a global capacity addition of three million cases for the group.
Mario Plourde, Cascades president and chief executive, said: “This modernisation project is directly aligned with the objectives set out in our strategic plan.
“It will not only allow us to replace ageing equipment with modern and efficient technology, but will also improve our integration rate, increase our geographical footprint and extend our ability to serve our customers in the United States.
“With today’s challenging market conditions, this is a crucial investment that will reduce our manufacturing and transportation costs, improve our environmental footprint and more importantly, bring us closer to our customers.”
