Friday, 09 September 2016 06:55

KapStone Paper And Packaging Corporation Announces Investments In Converting Assets

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KapStone Paper and Packaging Corporation (NYSE: KS) (the "Company" or "KapStone") have just announced it is making an investment in building a new state-of-the-art sheet plant in Ontario, California, as well as investing as a minority partner in a sheet feeder in Ontario, California.  The new sheet plant is expected to be manufacturing boxes by January 2017 and is intended to primarily supply the Company's Victory Packaging operations in Southern California as well as other KapStone customers.  This venture, as well as another minority investment in a sheet feeder announced today, are expected to increase KapStone's vertical integration by over 60,000 tons per year and will ramp up to that level over eighteen months.  Collectively, these investments are expected to be approximately $25 million and will be largely funded before fiscal year end 2016.

HOMELOGORoger Stone, Chairman and Chief Executive Officer of KapStone, said, "These investments are consistent with our strategy to increase the vertical integration of KapStone's mills, reducing exposure to non-integrated end markets, and are in addition to the 20,000 to 25,000 tons per year vertical integration from the Central Florida Box acquisition.  The Ontario, California, sheet plant will further extend our geographic reach to better service KapStone's customers while internalizing the production of some of our Victory Packaging corrugated box demand."

About the Company
Headquartered in Northbrook, Illinois, the Company is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has 4 paper mills, 22 wholly owned corrugated converting facilities including Ontario, California, 65 distribution centers, and approximately 6,300 employees.

Read 2667 times Last modified on Friday, 09 September 2016 10:31