{"id":10634,"date":"2025-12-04T03:59:24","date_gmt":"2025-12-04T08:59:24","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=10634"},"modified":"2025-12-04T03:59:24","modified_gmt":"2025-12-04T08:59:24","slug":"pca-plans-reconfiguration-at-wallula-containerboard-mill-us","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=10634","title":{"rendered":"PCA plans reconfiguration at Wallula containerboard mill, US\u00a0"},"content":{"rendered":"


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The company anticipates a workforce reduction of around 200 roles. Credit: T. Schneider \/ Shutterstock.com <\/figcaption><\/figure>\n<\/p><\/div>\n

Packaging Corporation of America (PCA) has outlined plans to permanently close one of its paper machines and its kraft pulping operations at the Wallula containerboard mill in Washington State.\u00a0<\/p>\n

The No 2 paper machine (W2) will be taken out of service.\u00a0\u00a0<\/p>\n

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The No 3 paper machine (W3) and recycled pulping operations will remain in use, with capacity to produce 285,000t a year of recycled linerboard and corrugating medium.\u00a0\u00a0<\/p>\n

The move is due to be completed by\u00a0the end of the first quarter of 2026, with the changes to trim the mill\u2019s annual capacity by 250,000t.\u00a0<\/p>\n

The W2 machine, which can produce 140,000t of corrugating medium annually, has been idle since May 2025.\u00a0\u00a0<\/p>\n

PCA expects the Wallula site to turn out 400,000t of containerboard in 2025.\u00a0<\/p>\n

The revised operating set\u2011up will reduce production costs by $125 per tonne from 2025 levels, citing an improved cost base and higher utilisation.\u00a0\u00a0<\/p>\n

PCA plans to compensate for the 250,000\u2011tonne reduction in Wallula\u2019s capacity through production gains at other mills in its network, starting in the fourth quarter (Q4) of 2026.\u00a0<\/p>\n

The restructuring is projected to result in a pre\u2011tax charge of $205m, largely recognised in Q4 2025 and Q1 2026.\u00a0\u00a0<\/p>\n

This would comprise roughly $165m in non\u2011cash impairment and accelerated depreciation, along with $40m in cash expenses related to contract termination, severance and other costs.\u00a0<\/p>\n

The company anticipates a workforce reduction of around 200 roles.\u00a0<\/p>\n

PCA makes containerboard products and uncoated freesheet paper.\u00a0<\/p>\n

It runs ten mills and 92 corrugated products plants and associated facilities across its network.\u00a0<\/p>\n

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