Packaging Corporation of America announced the permanent shutdown of the No. 2 paper machine and kraft pulping facilities at its Wallula, WA containerboard mill.
The reconfiguration will focus on operating the No. 3 paper machine and recycled pulping facilities to produce high-performance recycled linerboard and corrugating medium.
The actions are expected to lower production costs and enhance efficiency at the mill.
Production Capacity Reduction
Capacity will decrease by 250,000 tons per year at the Wallula mill.
Financial Impact
Anticipated pre-tax restructuring charges of approximately $205 million, with cost reduction of $125 per ton.
Staff Reduction
Expectation of a headcount reduction of approximately 200 positions.
- The restructuring at the Wallula mill aims to address high production costs and improve cost competitiveness.
- The company is focusing on enhancing efficiency and maintaining containerboard quality through strategic reconfiguration.
Packaging Corporation of America's decision to reconfigure its Wallula mill reflects a strategic move to improve cost efficiency and maintain competitiveness in the industry.