JACKSON, Alabama – Packaging Corp. of America (PCA) plans to launch a three-year, $440 million project to permanently convert a paper machine at its mill in Clarke County to produce linerboard used for corrugated packaging.
Lake Forest, Illinois-based PCA announced that it discontinued the production of uncoated freesheet, used for copy paper and other applications, on its No. 3 paper machine at the Jackson mill in late 2020.
After a temporary switch to produce linerboard, PCA is now making preparations to convert the mill’s paper machine into a 700,000-ton-per-year high-performance, virgin kraft linerboard machine in a phased approach over the next 36 months.
PCA said key elements in the conversion project include the installation of an OCC plant for recycling old corrugated containers and various pulp mill modifications. In addition, modifications and upgrades will be made to critical sections of the paper machine.
PCA Chairman and CEO Mark Kowlzan said the project will enable the company to meet strong packaging demand and to optimize the Alabama mill’s profitability and viability. The capital cost of the conversion is expected to be approximately $440 million.
“We are appreciative of the continued support from the State of Alabama, the Alabama Department of Commerce, the City of Jackson and Clarke County to help us continue providing quality jobs and a positive economic impact in the Jackson community,” Kowlzan said.
ECONOMIC IMPACT
Governor Kay Ivey said the project represents a positive development for the Jackson mill, a major industrial employer with more than 500 workers.
“Packaging Corp. of America’s reinvestment in its Jackson manufacturing facility will solidify the plant’s future by enhancing its competitiveness,” Governor Ivey said.
“This decision underlines the company’s confidence in its Alabama operation while also preserving jobs and safeguarding local education tax dollars. It’s a win for the company, the community and the state.”
Greg Canfield, Secretary of the Alabama Department of Commerce, said PCA’s project will increase the efficiency of the Clarke County plant while providing a long-term economic boost to Jackson, a city with a population of around 5,300.
“We’re committed to helping existing businesses grow and thrive in Alabama, and the impact of a major investment is always magnified when in happens in rural communities,” Secretary Canfield said.
“With this project, PCA is positioning its Jackson mill for the future, which will significantly benefit the city and the region for years to come.”
‘LONG-STANDING RELATIONSHIP’
Jackson Mayor Paul R. South said the project will allow PCA to continue providing quality jobs while securing a positive economic future for Clarke County.
“The City of Jackson looks forward to working with the corporation as the project moves forward,” South said. “In my opinion, they couldn’t have selected a better community. Jackson is a safe and peaceful city full of great people, with good schools and recreation and a strong work force, along with extensive natural resources.”
“This is wonderful news for Clarke County and the City of Jackson,” said Stan Hutto, chairman of the Clarke County Commission. “We have a long-standing relationship with this outstanding company, and we are committed to helping them achieve their goals to ensure a bright, successful future.”
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 90 corrugated products plants and related facilities.
The Jackson mill’s No. 1 paper machine will continue to produce uncoated freesheet products.
(Courtesy of Made in Alabama)
