Packaging Corp. of America is launching a three-year, $440 million project to permanently convert a paper machine at its mill in Clarke County to produce linerboard used for corrugated packaging.
The company discontinued production of uncoated freesheet, used in copy paper and other applications, on its No. 3 paper machine at the Jackson mill last year. After temporarily switching to linerboard production, the company is now going to convert the mill’s No. 3 machine into a 700,000-ton-per-year high-performance, virgin kraft linerboard machine.
The conversion will include installing an OCC plant for recycling corrugated containers and various pulp mill modifications, as well as upgrades to the No. 3 paper machine. The plant’s No. 1 paper machine will continue to produce uncoated freesheet products.
“We are appreciative of the continued support from the State of Alabama, the Alabama Department of Commerce, the City of Jackson and Clarke County to help us continue providing quality jobs and a positive economic impact in the Jackson community,” said PCA Chairman and CEO Mark Kowlzan.
PCA’s project will increase the efficiency of the Clarke County plant, providing stability to Jackson, which has a population of approximately 5,300.
“Packaging Corp. of America’s reinvestment in its Jackson manufacturing facility will solidify the plant’s future by enhancing its competitiveness,” said Gov. Kay Ivey.
Alabama Department of Commerce Secretary Greg Canfield said, “We’re committed to helping existing businesses grow and thrive in Alabama, and the impact of a major investment is always magnified when it happens in rural communities. With this project, PCA is positioning its Jackson mill for the future, which will significantly benefit the city and the region for years to come.”
PCA is the third largest producer of containerboard products and the third largest producer of uncoated freesheet paper in North America. It operates eight mills and 90 corrugated product plants and related facilities, including plants in Madison and Opelika.