ATLANTA--(BUSINESS WIRE)--WestRock Company (NYSE:WRK) today announced plans to build a new corrugated box plant in Pleasant Prairie, Wisconsin, to meet growing demand from customers in the Great Lakes region. The Company intends to close its existing plant in North Chicago when construction of the new facility is completed.
This investment will position WestRock to increase its production capabilities and improve its cost profile in the Great Lakes region. Construction is estimated to cost approximately $140 million and is expected to be partially offset by property sales.
“Investing in a new state-of-the-art corrugated converting facility elevates our production capabilities and better supports our end market strategy and margin improvement targets,” said David B. Sewell, chief executive officer, WestRock. “We are pleased to expand our presence in an area of critical demand like the Great Lakes and are confident that by implementing production initiatives such as these, we will continue to solidify WestRock’s position as the supplier of choice.”
The new facility is expected to:
- Support reduced manufacturing costs and waste, improving WestRock’s overall manufacturing cost profile;
- Improve sustainability through reduced energy consumption and new technology;
- Improve quality and customer satisfaction using state-of-the-art automation;
- Enhance digital capabilities and provide real-time data to improve decision making and reduce unplanned downtime; and
- Serve all key end markets in the Great Lakes region, which include retail, distribution, processed food, industrial, and protein businesses among others.
Construction will begin in 2024 and is expected to be completed in 2025.
About WestRock
WestRock (NYSE:WRK) partners with our customers to provide sustainable paper and packaging solutions that help them win in the marketplace. WestRock’s team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia. Learn more at www.westrock.com.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations, beliefs, plans or forecasts and are typically identified by words or phrases such as “may,” “will,” “could,” “should,” “would,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “prospects,” “potential” and “forecast,” and other words, terms and phrases of similar meaning. Forward looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. We caution readers that forward-looking statements are not a guarantee of future performance and that actual results could differ materially from those contained in forward-looking statements. Our businesses are subject to a number of risks that could affect any such forward-looking statements. These risks are described in our filings with the Securities and Exchange Commission, including in Item 1A under the caption “Risk Factors” in our annual report on Form 10-K for the year ended September 30, 2023.
