USA – WestRock has unveiled plans to establish a cutting-edge corrugated box plant in Wisconsin, as a pivotal element of its strategic initiative to meet the burgeoning demand in the Great Lakes region.
The company envisions augmenting production capabilities, reducing manufacturing costs, and solidifying its standing as the preeminent “supplier of choice.”
The forthcoming facility, with an estimated construction cost of US$140 million, is slated to supplant the existing plant in North Chicago upon completion.
WestRock anticipates that property sales associated with the transition will partially offset the investment.
David B. Sewell, CEO of WestRock, elucidates that the company is expanding its footprint in an area characterized by “critical demand,” expressing confidence in the efficacy of the production initiatives.
He states, “Investing in a new state-of-the-art corrugated converting facility elevates our production capabilities and better supports our end market strategy and margin improvement targets.”
WestRock articulates that the upcoming plant is poised to yield myriad benefits, encompassing cost efficiency, sustainability, automation, digitalization, and market expansion.
The construction of the facility is slated to commence in 2024, with an anticipated completion date in 2025.
This strategic move underscores WestRock’s unwavering commitment to meeting the evolving needs of its customers, concurrently embracing technological advancements and sustainable practices within the packaging industry.
Packaging industry analyst Neil Farmer comments on the prospective benefits of the new plant, emphasizing its positive environmental impact.
He notes, “The Great Lakes corrugated plant will increase production capacity to meet the growing demand in the area.
“WestRock’s planned closure of an existing plant in North Chicago will be good for the environment because the new plant will improve sustainability through reduced energy consumption and new technology when it opens in 2025.”
The facility is envisioned to not only enhance production capacity but also contribute to environmental sustainability by reducing energy consumption and incorporating state-of-the-art technology.
This move aligns with WestRock’s overarching goals of bolstering its environmental performance and promoting sustainability in the region.
Seattle and North Carolina packaging facilities closure
Meanwhile, the packaging company has also revealed its intentions to close a box plant in Seattle and another facility in Lexington, North Carolina, affecting more than 240 jobs.
The Seattle facility production will be shifted to WestRock’s new box plant in Longview, Washington, which opened in November, as well as its existing Longview specialty box plant.
WestRock CEO David Sewell said in a statement for the March 2023 groundbreaking of the new box plant that this facility would “provide new capabilities and efficiencies” to better serve customers.
At that time, the company estimated the Longview facility would create 40 local jobs upon opening.
The North Carolina location produces healthcare packaging, and production will be retained within WestRock’s mill network. “The capital investment required to keep the facility competitive is better deployed in other business assets,” Johnson said.
The earliest date for layoffs would be March 18, and operations are expected to cease mid-May. The company is offering outplacement assistance, and eligible employees can apply for positions at other WestRock facilities.
For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.
