The three-year project will involve the permanent conversion of a paper machine to manufacture linerboard for corrugated packaging applications
Illinois-based Packaging Corp. of America (PCA) has announced plans to invest $440m to convert a paper machine at its Clarke County mill in Alabama.
The three-year project will involve the permanent conversion of a paper machine at the Jackson mill to manufacture linerboard for corrugated packaging applications.
PCA chairman and CEO Mark Kowlzan said: “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.”
PCA has halted the production of uncoated freesheet, suitable for copy paper and other applications, on its No. 3 paper machine at the Jackson mill at the end of last year. The Jackson mill’s No. 1 paper machine will continue to manufacture uncoated freesheet products.
After the temporary commencement of a linerboard production, the company now plans to convert the mill’s paper machine into a virgin kraft linerboard machine in a phased approach over the next three years.
The new machine will hold a capacity to produce 700,000 tonnes of virgin kraft linerboard per annum.
The conversion project consists of the installation of an OCC plant for recycling old corrugated containers and different pulp mill modifications.
PCA stated that the modifications and upgrades will be made to critical sections of the paper machine.
Alabama Governor Kay Ivey said: “Packaging Corp. of America’s reinvestment in its Jackson manufacturing facility will solidify the plant’s future by enhancing its competitiveness.
“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.”
With eight mills and 90 corrugated products plants and related facilities, PCA is said to be the third-largest producer of containerboard products and the third-largest producer of uncoated freesheet paper in North America.