LAKE FOREST, Ill. --Feb. 25, 2021--Packaging Corporation of America (NYSE: PKG) today announced that it has discontinued production of uncoated freesheet (UFS) grades on the No. 3 paper machine at itsJackson,
Plans are for the machine to run at its current containerboard production rate for the next 12 to 15 months until the scheduled first phase outage is taken in the second quarter of 2022. After the first phase outage, the converted machine is expected to operate at an initial production rate of approximately 75% of capacity. The second phase outage is planned for mid-2023, with the machine reaching its run-rate capacity of 2,000 tons-per-day by the end of 2023. The key items in the scope of the conversion include installation of an OCC plant, various pulp mill modifications, paper machine modifications to the forming and press sections, headbox, and dryer section of the machine, and winder upgrades. The capital cost of the conversion is expected to be approximately
PCA Chairman and CEO
PCA Executive Vice President
PCA is the third largest producer of containerboard products and the third largest producer of uncoated freesheet paper in
Some of the statements in this press release are forward-looking statements. Forward-looking statements include statements about expected benefits from the conversion activities, the expected costs of the machine conversion, the capabilities of the converted machine, the timing of completion of the machine conversion activities, our future earnings and financial condition, the impact of the COVID-19 pandemic on our business, expected benefits from acquisitions and restructuring activities, our industry and our business strategy. 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: delays, difficulties, or higher than expected costs in completing the conversion project or achieving the expected benefits of the project; the impact of the COVID-19 pandemic on the health of our employees and on the employees of our suppliers and customers, on our ability to operate our business, and on economic conditions affecting our business and demand for our products; the impact of general economic conditions; conditions in the paper and packaging industries, including competition, product demand and product pricing; fluctuations in wood fiber and recycled fiber costs; fluctuations in purchased energy costs; the possibility of unplanned outages or interruptions at our principal facilities; and legislative or regulatory requirements, particularly concerning environmental matters, as well as those identified under Item 1A. Risk Factors in PCA’s Annual Report on Form 10-K for the year ended
Source: PCA