America Packaging Corporation Suspends Operations for Two Months

America Packaging Corporation Suspends Operations for Two Months

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As the demand for paper and packaging reduces amid coronavirus, American Packaging Corporation suspends operations at its Jackson Mill, Alabama, for two months.

Several businesses are facing downtime as coronavirus hits the globe. Except for some essential items like eatables and medicines, the demand for almost everything is falling rapidly, compelling the manufacturers to discontinue their productions. Troubled with the same plight of demand-reduction, the American Packaging Corporation announces to suspend operations of its Jackson site. The move involves abeyance of sheet-conversion activities and idling of both paper machines at the site for May and June.

Packaging Corporation of America (PCA) is a leading manufacturer of containerboard and uncoated freesheet and a key end-user of recovered paper in the United States. According to a company filing, around 790,000 tons of recovered fiber was purchased by the company in 2019. The five of its six containerboard mills and both of its paper mills – Jackson Mill and International Falls Mill, use this recovered fiber as a feedstock.

The Jackson mill of PCA produces various varieties of writing and printing paper under the brand of Boise Paper. According to the company’s financial report, the mill purchases recovered pulp and fiber from multiple suppliers on a contractual basis.

While PCA plans to suspend the operations of its coronavirus-affected Jackson mill temporarily, the operations at its International Falls situated mill will continue. The corporation estimates a drop of about 70,000 tons in paper production during the tenure of suspension.

Also Read : Impact of Coronavirus on Paper Industry and Shipping Sector

In the announcement, Paul LeBlanc, the vice president of Boise Paper, revealed how COVID – 19 has been affecting the paper industry. The enactment of lockdown for the control of pandemic has brought down the consumption of paper in businesses, offices, and schools. As per Paul, for conforming paper supply to this reduced demand, the company has to stop production for some time. He called this decision essential for managing paper business amid the challenging times of health and financial crisis.

Paul has mentioned about the momentarily lay off of around 340 employees during the idling of Jackson mill. He affirmed the company’s commitment to treat the impacted employees with respect and fairness. As told by him, the company commits to explain each individual about the exact repercussions that this suspension will be having on them.

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