<B>Conversion Complete in Indiana</B>

The conversion of the Inland Paperboard mill in Newport, Indiana from a corrugated medium machine to one that is capable of producing gypsum paper for wallboard, as well as linerboard and corrugated medium, was completed last week. The mill, called Premier Boxboard LLC, is a 50/50 joint venture between Caraustar Industries and Inland Packaging. Caraustar will be the managing partner of the mill.

The conversion, costing around $75 million, took roughly a year to complete. The conversion is a strategy that allows Temple Inland to reduce its dependence strictly on corrugated medium, and give the one machine mill the opportunity to extend the number of products that are capable of being made at the machine.

The mill is able to produce around 285,000 tons of finished product a year, with old corrugated containers remaining the key raw material being used by the machine. However, a spokesman for Caraustar says, with the conversion the mill will be able to use a number of other grades of recovered fiber.

Over the next several weeks Caraustar will be troubleshooting the new equipment to ensure proper operation.

Most of the finished product will be sold in the Midwest, although the company will be able to ship throughout the country.

August 2000
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