WestRock to close Corrugated Medium Operations at St. Paul, Minnesota Facility

Rhea-AI Summary

WestRock Company (NYSE: WRK) announced the permanent closure of its corrugated medium manufacturing operations at its St. Paul, Minnesota mill, impacting approximately 130 jobs. The company will continue producing coated recycled board at this location. The decision is part of WestRock's strategy to enhance returns on invested capital, as maintaining the corrugated medium machinery would necessitate significant investments. The closure will lead to a reduction of 200,000 tons in annual production.

Positive

• Continuation of coated recycled board production at St. Paul mill.
• Focus on improving return on invested capital.

Negative

• Closure of operations results in the loss of approximately 130 jobs.
• Reduction of 200,000 tons of annual corrugated medium production.

ATLANTA--(BUSINESS WIRE)-- WestRock Company (NYSE: WRK) today announced it will permanently close the corrugated medium manufacturing operations at its St. Paul, Minnesota, recycled paper mill. The production of coated recycled board at this location will remain in operation.

WestRock is committed to improving its return on invested capital as well as maximizing the performance of its assets, and the corrugated medium machinery at the St. Paul location would require significant capital investment to maintain and improve going forward. The shutdown of these assets will result in the reduction of 200,000 tons of annual corrugated medium production.

“Shutting down operations and impacting the lives of our employees is a difficult decision to make,” said David B. Sewell, chief executive officer at WestRock. “As we implement our plans to close the corrugated medium operations in St. Paul, we are incredibly appreciative for the many contributions this team has made. We plan to assist these team members in exploring roles at other WestRock locations and with outplacement services.”

Approximately 130 jobs will be eliminated by this closure. Employees of WestRock’s St. Paul location will receive severance and outplacement assistance in accordance with Company policy and labor union agreements.

About WestRock

WestRock (NYSE: WRK) partners with our customers to provide sustainable paper and packaging solutions that help them win in the marketplace. WestRock’s team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia. Learn more at www.westrock.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations, beliefs, plans or forecasts and are typically identified by words or phrases such as “may,” “will,” “could,” “should,” “would,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “prospects,” “potential” and “forecast,” and other words, terms and phrases of similar meaning. Forward looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. We caution readers that forward-looking statements are not a guarantee of future performance and that actual results could differ materially from those contained in forward-looking statements. Our businesses are subject to a number of general risks that would affect any such forward-looking statements. These risks are described in our filings with the Securities and Exchange Commission, including in Item 1A under the caption “Risk Factors” in our annual report on Form 10-K for the year ended September 30, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221005005031/en/

Media:

Robby Johnson, 470-328-6397

Manager, Corporate Communications

robby.b.johnson@westrock.com

Investors:

Rob Quartaro, 470-328-6327

Senior Vice President, Investor Relations

rob.quartaro@westrock.com

James Armstrong, 470-328-6327

Vice President, Investor Relations

james.armstrong@westrock.com

Source: WestRock Company

FAQ

What is the impact of the St. Paul mill closure on WestRock's production?

The closure will result in a reduction of 200,000 tons of annual corrugated medium production.

How many jobs will be affected by WestRock's decision to close operations in St. Paul?

Approximately 130 jobs will be eliminated due to the closure.

What alternative production will continue at the St. Paul location after the closure?

Coated recycled board production will remain operational at the St. Paul mill.

Why did WestRock decide to close the corrugated medium manufacturing operations?

The decision was made to improve return on invested capital, as significant capital investment was needed to maintain operations.