The cardboard packaging manufacturer Smurfit Westrock, born of the merger between Smurfit Kappa and WestRock in 2024 has announced a significant reduction in its industrial capacity. Two plants in the United States will close permanently, and discussions are underway in Germany concerning two processing sites.
The U.S. site in St. Paul, Minnesota, specialized in the manufacture of coated recycled paperboard (CRB), will cease operations for good. In Forney, Texas, production of corrugated base paper will cease. However, the building dedicated to specialty applications, located on the same Texas site, will remain in operation.
Smurfit Westrock, which employs over 100,000 people in 40 countries, will reduce its production capacity by more than 500,000 tonnes. The Group justifies this decision by the evolution of demand, the level of operating costs and the need to optimize its industrial facilities. Falling volumes and pressure on prices in the CRB and containerboard segments accentuate the need for rebalancing.
At the same time, consultations have begun with works councils in Germany with a view to closing two processing sites. At this stage, no details have been released on their location or the volumes processed. These units belong to the Group's converting activities, presumably in the corrugated board sector.
In all, some 650 employees in the USA and Germany are affected by this restructuring plan.
Group Chairman Tony Smurfit says in the release: "Closing sites is never an easy decision. It's based on a realistic assessment of our industrial needs and costs."
