NORTHBROOK, Ill., Sept. 7, 2016 /PRNewswire/ -- KapStone Paper and
Packaging Corporation (NYSE: KS) (the "Company" or "KapStone")
today announced it is making an investment in building a new
state-of-the-art sheet plant in Ontario, California, as well as investing as a minority
partner in a sheet feeder in Ontario, California. The new sheet plant
is expected to be manufacturing boxes by January 2017 and is intended to primarily supply
the Company's Victory Packaging operations in Southern California as well as other KapStone
customers. This venture, as well as another minority
investment in a sheet feeder announced today, are expected to
increase KapStone's vertical integration by over 60,000 tons per
year and will ramp up to that level over eighteen months.
Collectively, these investments are expected to be approximately
$25 million and will be largely
funded before fiscal year end 2016.
Roger Stone, Chairman and Chief
Executive Officer of KapStone, said, "These investments are
consistent with our strategy to increase the vertical integration
of KapStone's mills, reducing exposure to non-integrated end
markets, and are in addition to the 20,000 to 25,000 tons per year
vertical integration from the Central Florida Box
acquisition. The Ontario,
California, sheet plant will
further extend our geographic reach to better service KapStone's
customers while internalizing the production of some of our Victory
Packaging corrugated box demand."
About the Company
Headquartered in Northbrook, Illinois, the Company is the fifth
largest producer of containerboard and corrugated packaging
products and is the largest kraft paper producer in the United States. The Company has 4 paper
mills, 22 wholly owned corrugated converting facilities including
Ontario, California, 65 distribution centers, and
approximately 6,300 employees.
Forward-Looking Statements
Statements in this news release that are not historical are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can often be identified by words such as "will,"
"should," "expect," "project," "intend," "plan," "believe,"
"estimate," "potential," "outlook," "guidance," or "continue," the
negative of these terms or other similar expressions. These
statements reflect management's current views and are subject to
risks, uncertainties and assumptions, many of which are beyond the
Company's control that could cause actual results to differ
materially from those expressed or implied in these
statements.
Achieving the anticipated benefits from mill integration
associated with the converting asset investments presents
challenges to management. Any investment or acquisition may not
achieve the same levels of profitability or revenues as our
existing business or perform as expected and could require us to
make unexpected capital contributions, expose us to additional
liabilities or require a disproportionate amount management time
and attention. Other factors that could cause actual results to
differ materially include, but are not limited to:
(1) industry conditions; (2) market and economic factors;
and (3) the ability to achieve and effectively manage
growth Further information on these and other risks and
uncertainties is provided under Item 1A "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2015 and elsewhere in reports that the Company
files with the SEC. These filings can be found on KapStone's Web
site at http://www.kapstonepaper.com and the SEC's Web site at
www.sec.gov. Forward-looking statements included herein speak only
as of the date hereof and the Company disclaims any obligation to
revise or update such statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events or circumstances.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kapstone-paper-and-packaging-corporation-announces-investments-in-converting-assets-300324128.html
SOURCE KapStone Paper and Packaging Corporation