Procurement News Notice |
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| PNN | 8149 |
| Work Detail | KapStone Paper and Packaging Corporation (NYSE: KS) (the "Company" or "KapStone") today announced it is making an investment in building a new state-of-the-art sheet plant in Ontario, California, as well as investing as a minority partner in a sheet feeder in Ontario, California. The new sheet plant is expected to be manufacturing boxes by January 2017 and is intended to primarily supply the Company's Victory Packaging operations in Southern California as well as other KapStone customers. This venture, as well as another minority investment in a sheet feeder announced today, are expected to increase KapStone's vertical integration by over 60,000 tons per year and will ramp up to that level over eighteen months. Collectively, these investments are expected to be approximately $25 million and will be largely funded before fiscal year end 2016. Roger Stone, Chairman and Chief Executive Officer of KapStone, 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." |
| Country | United States , Northern America |
| Industry | Paper & Packaging |
| Entry Date | 15 Oct 2016 |
| Source | http://www.prnewswire.com/news-releases/kapstone-paper-and-packaging-corporation-announces-investments-in-converting-assets-300324128.html |
