PKG Packaging Corp

The following information, including the exhibit described below, shall not be deemed “filed” hereunder for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On August 27, 2020, Hurricane Laura made landfall on the Louisiana coast approximately 100 miles south of the Company’s DeRidder, Louisiana containerboard mill. The mill had completed an orderly shutdown of operations prior to the arrival of the storm. Although the town of DeRidder and the homes of several employees sustained significant damage, the property damage to the mill was not significant. However, the electrical utility supplying power necessary for full mill operations was out of service for approximately 11 days preventing the operation of the mill’s two paper machines and other ancillary equipment. Electrical power was restored by the utility on September 7, 2020 and the mill began start-up of full operations at that time. The Company was able to work through all customer-related issues successfully during this period. Mill production was down, including the time necessary for storm preparations, a total of approximately 12 days or 40,000 tons. The Company is currently assessing the impact this may have on the previously announced scheduled outage planned for the fourth quarter of this year.

Some of the statements in this report are forward-looking statements. These forward-looking statements include statements about the potential effect on future production and scheduled outages. Statements that contain words such as “will”, “should”, “anticipate”, “believe”, “may”, “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 packaging business and demand for our packaging products; general economic conditions; general industry conditions affecting our packaging 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 as supplemented by Part II, Item 1A of PCA’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, each as filed with the Securities and Exchange Commission and available at the SEC’s website at “www.sec.gov”.