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PCA Schedules Short Downtime at its Jackson, AL Uncoated Freesheet Mill

By Amy Hahn / Published:

Release Date: Wednesday, April 1, 2020
Press release from the issuing company

Packaging Corporation of America (NYSE: PKG) 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. Expectations are reduction of paper production by approximately 70,000 tons, with the mill expected to restart on July 6, 2020. The idling of operations will result in the temporary layoff of about 340 employees and their Human Resources team has begun meeting with their affected employees. ”The International Falls paper mill will continue to operate at capacity during this period. The Company anticipates inventory to be at appropriate levels after this downtime.

Paul LeBlanc Vice-President Boise Paper states, “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,”

“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.

“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.

The Jackson mill was in the early stages of producing uncoated treated inkjet paper grades used in sheet and roll fed for high speed inkjet. It is unknown what percentage of the 70,000 tons will affect inkjet treated paper supply of Boise paper grades.

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Amy Hahn

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