USA – Smurfit Kappa, an Irish corrugated company, has unveiled its plans to establish its maiden South Carolina operation in Anderson County.
The investment of US$68 million into the new facility is anticipated to generate 200 new job opportunities within Anderson County. The company is set to secure a 259,000-square-foot facility at 1105 Scotts Bridge Road in Anderson, marking its debut operation in South Carolina.
Acknowledging the significance of this project, State Secretary of Commerce Harry M. Lightsey III affirmed, “As a global company, Smurfit Kappa has multiple options for establishing a new facility. We are confident that our pro-business economic climate will underscore that South Carolina is the ideal choice.”
The Coordinating Council for Economic Development sanctioned job development credits pertinent to this project on November 17.
“Delighted to welcome Smurfit Kappa to Anderson County, South Carolina,” expressed Brett Sanders, vice-chairman of Anderson County Council.
“This initiative is poised to substantially contribute to Anderson County’s economy and pave the way for new prospects for our residents. We eagerly anticipate the positive impact this new venture will bring to our region.”
This announcement follows the company’s merger deal with WestRock, projected to create the largest paper company globally—Smurfit WestRock.
“This combination will enable WestRock to further its key growth initiatives globally while providing our shareholders with a chance to significantly engage in the combined company’s substantial value growth,” articulated WestRock Chair Alan Wilson at the time of the declaration.
As of June 30, the combined 12-month adjusted annual revenue of both entities amounts to approximately US$34 billion, targeting annual pretax synergies surpassing US$400 million at the conclusion of the merger’s first full year.
Although Smurfit Kappa’s stock experienced a 10 percent decline after the merger’s terms were disclosed, CEO Tony Smurfit remains optimistic, asserting, “We will rebound strongly once investors grasp the potential benefits.”
He noted that if the deal proceeds, the majority of Smurfit WestRock’s business will operate in the Americas.
In a separate development, in 2018, Smurfit Kappa effectively rebuffed an approximately US$10.4 billion bid from Memphis, Tennessee-based International Paper (IP).
IP attributed the failure to a “lack of engagement” by Smurfit Kappa’s board of directors and management. Conversely, Smurfit Kappa asserted having “superior prospects as a standalone business.”
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