WestRock to permanently close corrugated medium operations at Minnesota mill

WestRock Co. has announced it will permanently close the corrugated medium manufacturing operations at its St. Paul, Minnesota, recycled paper mill, with the shutdown expected to take effect in early November.

The Atlanta-based containerboard and packaging producer says the production of coated recycled board at the St. Paul facility will remain in operation.

“Shutting down operations and impacting the lives of our employees is a difficult decision to make,” WestRock CEO David B. Sewell says in a statement. “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.”

According to WestRock, approximately 130 jobs will be eliminated by the closure, and Sewell says the company plans to assist those employees in exploring other roles at WestRock locations as well as help with outplacement services.

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

RELATED: WestRock to acquire remaining interest in Grupo Gondi

In June, WestRock permanently ceased operations at its Panama City, Florida, containerboard mill, citing the requirement of significant capital investment in that facility, too. The mill produced 645,000 tons of primarily heavyweight kraft and fluff pulp, and the company said at the time it announced the closure that production of fluff pulp is not a priority in the company’s strategy to focus on higher-value markets.

WestRock added that the closure of the Panama City mill would provide significant capital that would be “deployed to improve other key assets.”