Procurement News Notice |
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| PNN | 10503 |
| Work Detail | US-based KapStone Paper and Packaging has unveiled plans to build a new modern sheet plant in Ontario, California, US. The company is also investing as a minority partner in a sheet feeder in Ontario. The investments are expected to be around $25m, which will be funded by the end of this fiscal year. Expected to be operational by January 2017, the new sheet facility will manufacture boxes, which will be primarily supplied to the firm’s Victory Packaging business in Southern California. In addition, the boxes produced at the new facility will be supplied to the other customers of the company. KapStone said the new venture and minority investment in a sheet feeder are expected to increase the firm’s vertical integration by over 60,000 tons per year. KapStone Paper and Packaging chairman and CEO Roger Stone said: "These investments are consistent with our strategy to increase the vertical integration of KapStone's mills, reducing exposure to non-integrated end markets, and are in addition to the 20,000 to 25,000 tons per year vertical integration from the Central Florida Box acquisition. “The Ontario, California, sheet plant will further extend our geographic reach to better service KapStone's customers while internalizing the production of some of our Victory Packaging corrugated box demand." Based in Northbrook of Illinois, KapStone produces containerboard and corrugated packaging products. With around 6,300 employees, the company has four paper mills, 22 wholly-owned corrugated converting facilities and 65 distribution centers. |
| Country | United States , Northern America |
| Industry | Paper & Packaging |
| Entry Date | 15 Oct 2016 |
| Source | http://containers.packaging-business-review.com/news/kapstone-paper-and-packaging-to-build-new-sheet-facility-in-california-us-090916-5001009 |
