The North Charleston mill manufactures containerboard, uncoated kraft paper, and unbleached saturating kraft paper with a combined annual production capacity of 550,000 tonnes

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The decision to halt operations was based on the mill's high operating expenses and the requirement for a sizeable capital investment. (Credit: shilpa p from Pixabay)

US-based corrugated packaging company WestRock has announced that it will permanently stop operations at its paper mill in North Charleston, South Carolina, on 31 August 2023.

The North Charleston mill manufactures containerboard, uncoated kraft paper (KraftPak), and unbleached saturating kraft paper (DuraSorb). It has a combined annual production capacity of 550,000 tonnes.

WestRock CEO David Sewell said: “WestRock and its predecessor companies have had a long history in the region operating the North Charleston mill, and the contributions of the team members over the years have been greatly appreciated.

“The decision to close a facility and impact the lives of our team members is never easy, and we are committed to assisting our North Charleston team with exploring roles at other WestRock locations and outplacement assistance.”

According to WestRock, the North Charleston mill’s existing output of containerboard and uncoated kraft will be generated at other WestRock operations.

Upon completion of the shutdown process, the corrugated packaging company intends to leave the unbleached saturating kraft paper industry.

WestRock aims to enhance the performance of its assets and its return on invested capital.

The decision to halt operations at the mill was made as a result of the mill’s high operating expenses and the requirement for a sizeable capital investment. The mill in North Charleston has a workforce of about 500 people.

The packaging company said it will provide severance and outplacement assistance to employees as per WestRock policy and labour union agreements.

In March this year, the company broke ground on its new 410,000ft² corrugated box plant in Longview, Washington.

The plant is being built by Clayco, a full-service, turnkey real estate, architecture, engineering, design-build and construction firm.