PCA Announces Plans to Take Economic Downtime at its Jackson, AL Uncoated Freesheet Mill
April 01 2020 - 4:14PM
Business Wire
Packaging Corporation of America (NYSE: PKG) today announced
plans to temporarily idle both paper machines and the
sheet-converting operation at its Jackson Mill in Jackson, AL for
the months of May and June 2020. This is expected to reduce paper
production by approximately 70,000 tons, and the mill is expected
to restart on July 6, 2020. The Company’s paper mill in
International Falls, MN will continue to operate at capacity during
this period. The Company anticipates inventory to be at appropriate
levels after this downtime. "Due to the effects of the COVID-19
virus pandemic on paper consumption in schools, offices and
businesses it's critical that we balance the supply of our Boise
Paper products with our customers' demand for them,” said Paul
LeBlanc Vice-President Boise Paper.
"Unprecedented market conditions brought about by the measures
required to help control the spread of the COVID-19 virus have made
this business decision necessary to manage our paper business
during these challenging times,” LeBlanc said. "This is especially
difficult for the employees and their families who are directly
affected. PCA is committed to treating all impacted employees with
fairness and respect and to communicating openly and honestly with
each individual about how this decision will affect him or her. The
idling of operations will result in the temporary layoff of about
340 employees and our Human Resources team has begun meeting with
our affected employees.”
"We remain committed to our customers’ needs. We have more than
sufficient inventories and production planned to support all of our
customers’ paper needs during this time,” LeBlanc added. "Our team
will begin contacting customers and supply chain partners
immediately to ensure we make this period as seamless as
possible."
PCA is the third largest producer of containerboard products and
the third largest producer of uncoated freesheet paper in North
America. PCA operates eight mills and 95 corrugated products plants
and related facilities.
Cautionary Note on Forward-Looking Statements
Some of the statements in this press release are forward-looking
statements. These forward-looking statements include statements
about the duration of the idling of the mill, the effect of the
idling of the mill on our paper production, our belief that we will
return to appropriate inventory levels after idling of the mill,
and the impact of the COVID-19 pandemic on our business and demand
for our paper products. Statements that contain words such as
“will”, “should”, “anticipate”, “believe”, “expect”, “intend”,
“estimate”, “hope” or similar expressions, are forward-looking
statements. These forward-looking statements are based on the
current expectations of PCA. Because forward-looking statements
involve inherent risks and uncertainties, the plans, actions and
actual results of PCA could differ materially. Among the factors
that could cause plans, actions and results to differ materially
from PCA’s current expectations include the following: the impact
of the COVID-19 pandemic on economic conditions affecting our paper
business and demand for our paper products; general economic
conditions; general industry conditions affecting our paper
business, including competition, product demand and product
pricing; as well as those identified under Item 1A. Risk Factors in
PCA’s Annual Report on Form 10-K for the year ended December 31,
2019 filed with the Securities and Exchange Commission and
available at the SEC’s website at “www.sec.gov”.
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Barbara Sessions Packaging Corporation of America INVESTOR
RELATIONS: (877) 454-2509 PCA’s Website: www.packagingcorp.com
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