Sonoco will focus on the conversion of Hartsville corrugated medium machine into an advanced URB machine
Sonoco is set to invest $83m to strengthen its uncoated recycled paperboard mill system in the US and Canada. (Credit: Thanks for your Like • donations welcome from Pixabay)
Diversified packaging firm Sonoco has announced an investment of around $83m to bolster its uncoated recycled paperboard (URB) mill system in the US and Canada.
The company will use the majority of the investment to convert its corrugated medium machine, dubbed No. 10 machine, into an advanced URB machine at Hartsville facility in South Carolina.
The new Hartsville machine will manufacture a range of paper grades
With an annual production capacity of around180,000 tons, the new Hartsville machine will hold the capacity to manufacture a range of paper grades.
The low-cost URB machine will help the company to better serve its industrial and consumer converted products businesses, as well as external trade customers.
By the end of this year, Sonoco will be exiting the corrugated medium market due to the conversion of the No. 10 machine.
The company will begin the conversion of No. 10 machine with the development of a new recycled fiber stock prep system, which will enable the Hartsville paper mill complex to use different low-cost mixed paper and old corrugated containers (OCC).
The high-speed fourdinier machine will be added with new forming, pressing and roll finishing/handling capabilities, in addition to new electronics and controls technology.
Sonoco will start the design work and stock prep development in the second half of this year, and plans to complete the machine conversion and begin operations by early 2022.
The firm will also enhance the capacity of its Wisconsin Rapids mill, as part of the mill system optimisation programme.
In addition, Sonoco announced that it is permanently closing its No. 3 URB paper machine in Hartsville and its Trent Valley paper mill in Ontario, Canada, due to market conditions.
Sonoco, which is one of the major producers of URB, operates 12 mills and 20 machines in the US and Canada.
Sonoco president and CEO Howard Coker said: “We are calling this investment Project Horizon, as we will be creating a much brighter future for our domestic URB mill system while resolving the volatility we have experienced as an independent producer of corrugated medium from our No. 10 machine.
“These investments will drive significant operating cost savings, ensure the long-term viability of our Hartsville paper mill complex and place our U.S. and Canada URB mill system into the top quartile of performance from a cost perspective.”
In March, Sonoco introduced sugarcane-based fibre bowl designed for refrigerated, frozen and prepared foods.