US paper and packaging company Packaging Corporation of America (PCA) announces a $440m conversion project aimed at reducing its exposure to fine paper markets and boosting kraftliner capacity.
Packaging Corporation of America (PCA) will convert the uncoated woodfree paper machine PM 3 at the Jacksonville, Alabama pulp and paper mill to corrugated case material production over the next 36 months. The company has been already producing kraftliner on the PM 3 since the fourth quarter 2020. Now, the PCA company is preparing the grounds for a permanent conversion of the paper machine. The annual capacity of PM 3 is said to almost double to 635,000 t (700,000 sh.t).
“The phased conversion over the next few years of the No. 3 paper machine at our Jackson Mill will provide much-needed internal linerboard supply …[…] This approach allows us to effectively enhance the mill’s profitability and viability by managing the exacerbated decline in demand for UFS products while addressing the company’s integrated containerboard supply needs,” said PCA CEO Mark Kowlzan.
