WestRock (NYSE:WRK) announced today that it is reconfiguring its South Carolina, paper mill to improve the mill's operating efficiency and long-term competitiveness. The reconfiguration includes an anticipated workforce reduction of ~260 positions over a five-month period, starting in January 2020.
As part of the reconfiguration, the company will permanently shut down one of the mill’s three paper machines and related physical infrastructure, eliminating approximately 28K tons of linerboard capacity. The reconfigured mill’s production capacity will total approximately 605K tons per year, consisting of three grades.
"The actions that we are taking at our North Charleston mill will substantially improve the long-term competitiveness of the mill by reducing our on-going operating costs and capital needs, and focusing more than half of the mill’s production on the high-value, differentiated DuraSorb and KraftPak products," notes WestRock CEO Steve Voorhees. "Reducing the production of linerboard at this mill will help balance our supply with customer demand across our system," he adds.
The company anticipates that the reconfiguration will increase WestRock’s annual EBITDA by approximately $40M, primarily due to the reduction in operating costs from the shutdown of the paper machine and its associated infrastructure.
Source: Press Release
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