WestRock to Shut Down Tacoma Site
WestRock Co. is continuing its footprint optimization by shutting down a second facility in the span of just weeks.
The Atlanta-based paper and packaging producer has announced that it will be closing its Tacoma, Washington mill. By the end of September, all operations will end after a series of production consolidations during 2023’s first half.
“WestRock is working to optimize our operational footprint and consolidate production in order to improve our return on invested capital and we have made the difficult decision to close the Tacoma mill as part of this effort,” David B. Sewell, WestRock’s CEO, stated.
After careful consideration, it has been decided that closing the Tacoma site is necessary due to high operating costs and the need for large capital investment. This arrangement will unfortunately affect nearly 400 employees.
“One of the most critical factors we consider when making the difficult decision to close a facility is the impact it will have on the lives of our team members, and we are committed to assisting our Tacoma team with exploring roles at other WestRock locations and nearby companies as well as providing outplacement assistance.”
Reduced Capacity
WestRock’s Tacoma mill shut down will result in a reduction of capacity for both kraft and white top liner, as well as bleached pulp, amounting to approximately 510,000 tons annually. The plant’s closure will equate to around 600,000 tons per year of pulp, and 25,000 tons of specialty grade capacity that will no longer be produced. However, most of its kraft and white top liner output will be transitioned over to other mills owned by WestRock.
A document was recently filed with the U.S. Environmental Protection Agency’s National Pollutant Discharge Elimination System regarding the mill, which spans nearly 60 acres of land. A 2021 permit reports that the mill primarily uses virgin wood fiber and old corrugated containers (OCC) as materials for production. It is estimated that each day, 650 tons of OCC are consumed at this location, leading to 237,000 tons being used every year.
June also saw the release of WestRock’s sustainability report, indicating that during the 2022 fiscal year, the company had utilized 5.5 million tons of recovered fiber.
Additional Closures Reported
Last month, WestRock filed a Worker Adjustment and Retraining Notification (WARN) notice disclosing its decision to halt its St. Louis-based corrugated container manufacturing facility, which will lead to 52 worker layoffs by mid-September. Production will be transferred to other WestRock locations, and the site is predicted to cease operations in mid-August. The changes are part of the firm’s “ongoing broader optimization effort.”
Last year, WestRock additionally decided to shut down a mill in Panama City, Florida and permanently and cease operations for corrugated medium production at its recycled paper mill located in St. Paul, Minnesota. This closure resulted in the reduction of up to 200,000 tons of production each year from the St. Paul manufacturing facility.
Then, in May, WestRock revealed its plans to stop operations of both a North Charleston, South Carolina paper mill and a corrugated container plant in Anne Arundel County, Maryland. Both closures will take place this month, and over 500 workers will be released.
“We are accelerating our efforts to streamline our operations and drive growth in the most attractive markets,” Sewell remarked in May. “Looking ahead, we remain committed to operating world class assets and investing our capital to drive the greatest returns.”
