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Funding to Convert Hartsville, S.C., Corrugated Medium Machine to URB Scheduled to be Accomplished in Second Quarter of 2022
Firm Pronounces Intentions to Shut 70,000 Tons/Yr of Capability at Hartsville Mill Advanced
HARTSVILLE, S.C., July 07, 2021 (GLOBE NEWSWIRE) — Sonoco (NYSE: SON), one of many largest diversified international packaging firms, right now supplied a progress report on Challenge Horizon, its $115 million funding to rework its corrugated medium machine in Hartsville, S.C. to a state-of-the-art uncoated recycled paperboard operation with annual manufacturing capability of 180,000 tons.
“The conversion of our corrugated medium machine (#10 machine) to URB is anticipated to be accomplished by the top of the second quarter of 2022, and there are a selection of great building tasks underway that can modernize the infrastructure of your complete Hartsville Mill Advanced and permit for extra environment friendly and protected dealing with of uncooked supplies and completed items,” stated Tim Davis, Division Vice President and Common Supervisor, Paper & Adhesives, U.S./Canada.
A key component of Challenge Horizon is building of a brand new inventory prep system to supply roughly 650 tons per day of recycled fiber to the rebuilt #10 machine and different Hartsville cylinder machines. The brand new inventory prep system will permit for elevated consumption of lower-cost blended paper, together with Previous Corrugated Containers (OCC), and must be operational in October 2021, Davis stated.
To scale back paper ending and warehouse complexity and value, Sonoco can also be constructing a brand new offline winding operation and 102,000-square foot completed items warehouse on the Hartsville complicated. The brand new offline winding division will incorporate new state-of-the-art tools and may create 16 new positions.
As beforehand introduced, Sonoco shall be exiting the corrugated medium market by early 2022 and expects URB capability by way of its U.S. and Canada mill community to stay impartial at roughly 1.2 million tons. Primarily based on the progress of Challenge Horizon, the Firm now expects to completely shut down its Hartsville #1 and #9 URB cylinder machines which is able to scale back annual capability by roughly 70,000 tons. The precise timing of the closures will depend upon market situations in addition to the start-up of the transformed Hartsville #10 machine. In 2020, Sonoco completely shut down a 30,000 tons/12 months machine in Hartsville and its 95,000 tons/12 months Trent Valley, Ontario, Canada paper mill.
The brand new Hartsville machine is being designed with the purpose of being the bottom value URB machine on the earth, with the potential of manufacturing a variety of high-value paper grades to service Sonoco’s industrial and shopper transformed merchandise companies and exterior commerce clients. Challenge Horizon is projected to drive $30 million in annual value financial savings by 2023, make sure the long-term viability of the Hartsville paper mill complicated and place its U.S. and Canada URB mill system into the highest quartile of efficiency from a value perspective, Davis stated.
Sonoco is likely one of the world’s main producers of URB with the potential of manufacturing roughly 2 million tons yearly. The Firm can also be one of many largest URB producers within the U.S. and Canada working 11 mills and 18 machines in South Carolina, Tennessee, Virginia, Massachusetts, Kansas, Wisconsin, California, Washington and Ontario, Canada.
Earnings Convention Name Webcast
Sonoco administration will host a convention name and webcast to assessment its second quarter 2021 earnings and supply an replace on Challenge Horizon starting at 11 a.m. ET on Thursday, July 22, 2021. The reside convention name and corresponding presentation may be accessed at www.sonoco.com, underneath the Investor Relations part, or at https://investor.sonoco.com.
About Sonoco
Based in 1899, Sonoco (NYSE: SON) is a worldwide supplier of shopper, industrial, healthcare and protecting packaging. With annual internet gross sales of roughly $5.2 billion, the Firm has 19,000 staff working in roughly 300 operations in 34 nations, serving a few of the world’s best-known manufacturers in some 85 nations. Sonoco is dedicated to creating sustainable merchandise, companies and packages for our clients, staff and communities that assist our company objective of Higher Packaging. Higher Life. The Firm was listed as one in all Fortune’s World’s Most Admired Firms for 2021 in addition to being included in Barron’s 100 Most Sustainable Firms for the third 12 months in a row. For extra data, go to www.sonoco.com.
Contact: Roger Schrum +843-339-6018 roger.schrum@sonoco.com
