Production capacity at SC mill includes linerboard, folding carton and kraft paper
WestRock Company is reconfiguring its North Charleston, South Carolina, paper mill to improve the mill’s operating efficiency and long-term competitiveness.The reconfiguration includes permanently shutting down one of the mill’s three paper machines and related physical infrastructure, eliminating approximately 288,000 tons of linerboard capacity. The reconfigured mill’s production capacity will total approximately 605,000 tons per year, consisting of three grades: kraft linerboard; KraftPak unbleached folding carton; and DuraSorb, a saturating kraft paper used for decorative laminate and industrial end uses.
“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,” said Steve Voorhees, chief executive officer of WestRock. “Reducing the production of linerboard at this mill will help balance our supply with customer demand across our system.”
The company anticipates that the reconfiguration will increase WestRock’s annual EBITDA by approximately $40 million, primarily due to the reduction in operating costs from the shutdown of the paper machine and its associated infrastructure. This reconfiguration includes an anticipated workforce reduction of approximately 260 positions at this mill over a five-month period, starting in January 2020.