Atlantic Packaging Products, Ltd., of Scarborough, Ontario, Canada, is pleased to announce the formation of a strategic partnership with York Container Company (YCC) of York, Pennsylvania. Details and terms of this partnership are not being disclosed. Stephen Tansey, President and representative of YCC's shareholders, commented "York Container is committed to growth and providing innovative solutions to our customers. We have enjoyed robust growth over the past several years, but we believe that in order to take our plans to the next level we need to partner with a like-minded company to expand geographically and extend our capabilities to a broader customer base. After an evaluation of our various options, we are thrilled to join forces with Atlantic. This is the best possible outcome for all of our stakeholders, in particular, our customers and employees." Irving Granovsky, Chairman of Atlantic Packaging, describes the rationale for this transaction: "Atlantic is always looking for progressive and well-managed companies to team up with. We feel York Container is a wonderful addition to our partnership portfolio." Click Read More below for additional detail.
WestRock Company (NYSE: WRK) announced today that it is reconfiguring its North Charleston, SC, paper mill to improve the mill’s operating efficiency and long-term competitiveness.
As part of the reconfiguration, WestRock will permanently shut down one of the mill’s three paper machines and related physical infrastructure, eliminating approximately 288,000 tons of linerboard capacity. The reconfigured mill’s production capacity will total approximately 605,000 tons per year, consisting of three grades: kraft linerboard; KraftPak, an unbleached folding carton kraft paper; and DuraSorb, a saturating kraft paper used for decorative laminate and industrial end uses.
“The actions that we are taking at our North Charleston mill will substantially improve the long-term competitiveness of the mill by reducing our on-going operating costs and capital needs, and focusing more than half of the mill’s production on the high-value, differentiated DuraSorb and KraftPak products,” said Steve Voorhees, chief executive officer of WestRock. “Reducing the production of linerboard at this mill will help balance our supply with customer demand across our system.”
The company anticipates that the reconfiguration will increase WestRock’s annual EBITDA by approximately $40 million, primarily due to the reduction in operating costs from the shutdown of the paper machine and its associated infrastructure. This reconfiguration includes an anticipated workforce reduction of approximately 260 positions at this mill over a five-month period, starting in January 2020.
“We understand that this reconfiguration will impact our employees, their families and the community,” continued Voorhees. “Our teams are working to provide support and resources to our employees and their families as we move forward.”