Creve Coeur, Missouri, and Chicago, Illinois, USA, 26 June 2008 -- /PRNewswire/ -- Smurfit-Stone Container Corporation (NASDAQ:SSCC) will cease operations of its containerboard machine at the Snowflake, Arizona, mill no later than 15 October 2008.
The Snowflake mill includes two newsprint machines owned by Catalyst Paper Corporation and one containerboard machine owned by Smurfit-Stone, but managed by Catalyst under a 10-year agreement set to expire in October. The company has issued notice to Catalyst of its intent to permanently cease operations of its paper machine, which has the capacity to produce 135,000 tons of containerboard medium annually. The company expects to incur an after-tax restructuring charge approximating USD 0.01 per diluted share related to this closure in the third quarter of 2008.
Commenting on this closure, Steven J. Klinger, president and COO, said: "The Snowflake containerboard machine represents our highest cost medium capacity. Given mounting inflationary cost pressures related to energy, freight, and fiber, it is imperative we continue to take the necessary actions to reduce our operating costs. Through our on-going mill system optimization efforts, we are well structured to serve all Snowflake containerboard customers from other Smurfit-Stone mills."
Smurfit-Stone Container Corporation (NASDAQ:SSCC) is the industry's leading integrated containerboard and corrugated packaging producer and is one of the world's largest paper recyclers. The company is a member of the World Business Council for Sustainable Development, the Sustainable Forestry Initiative(R), and the Chicago Climate Exchange. Smurfit-Stone generated revenue of USD 7.4 billion in 2007, has led the industry in safety every year since 2001, and conducts its business in compliance with the environmental, health, and safety principles of the American Forest & Paper Association.
Source: Smurfit-Stone Container Corporation