Smurfit-Stone Making Changes at Mills, Plants

Smurfit-Stone announced that it is converting one of its paper machines at its Hodge, La., mill from corrugated medium to kraft paper. The move will be complete within the next several months. The No. 1 machine previously produced around 150,000 tons per year of corrugated medium.

The company also announced that it will not restart its No. 1 paper machine at its Missoula, Mt., containerboard mill. The machine had been idled since March 2001. It had the capacity of producing 180,000 tons of linerboard a year.

Further, the company is closing three container plants it acquired in the MeadWestvaco purchase. The plants are located in Spartanburg, S.C.; Ft. Smith, Ark.; and Milwaukee, Wis. The plants operate within the area of container plants Smurfit already operates. The plants are tentatively scheduled to close first quarter 2003. 

The mill reconfiguration is in concert with reductions in supply to the company of about 250,000 tons per year of medium and about 27,000 tons of kraft linerboard.

 This resulted from the transfer of Smurfit-Stone’s ownership in Groveton Paper Board, Inc. and the termination of supply contracts for 170,000 tons of medium from two significant suppliers in the third and fourth quarters.

Smurfit-Stone’s acquisition of the Stevenson mill added about 830,000 tons per year of corrugating medium to the company’s containerboard capacity.

William N. Wandmacher, vice president and general manager, North American Containerboard Mill and Forest Resources division, said the reconfiguration increases net medium supply to Smurfit-Stone’s system by approximately 400,000 tons, or about half of the Stevenson mill output.  In addition, the reconfiguration creates efficiencies and addresses internal and external needs for containerboard and kraft paper products.

“The acquisition of the Stevenson mill gives us the production capacity and potential to better balance our system logistics,” Wandmacher said. “The moves that we are announcing today reinforce our commitment to produce to meet demand, while enhancing quality and service and providing a wider range of products to our customer base.”