The new plant will produce bathroom tissue, kitchen paper towels, paper napkins and hand towels.
Suzanne Blanchet, outgoing president and chief executive of Cascades Tissue Group, said the company is expanding its presence in the U.S. Southeast.
"In doing so, we are moving closer to many key markets, and improving our productivity and logistics while enhancing customer service," she said in a statement.
Blanchet is leaving the tissue group to become senior vice-president of corporate development for the whole company.
The US$55-million project is expected to start operation by the end of the year.
Based in Kingsey Falls, Que., Cascades is one of North America's largest manufacturers of tissue paper.