Business Wire | Oct 6, 2020 04:30PM EDT

WestRock to Reduce SBS Capacity by Approximately 200,000 Tons

Oct. 06, 2020

ATLANTA--(BUSINESS WIRE)--Oct. 06, 2020--WestRock Company (NYSE: WRK) announced today that it plans to reduce its solid bleached sulphate (SBS) mill system production capacity by 200,000 tons by shutting down one paper machine at its Evadale, Texas, mill.

This shutdown of the paper machine at the Evadale mill is expected to occur by the end of 2020 and reduce headcount at the mill by 60 employees. The remaining two machines at the Evadale mill will continue to support important end markets, including liquid packaging, foodservice, food and premium coated pre-print liner for corrugated boxes, among other grades. The company's total SBS production capacity after this action will be approximately 1.9 million tons.

"As a company, we aim to balance our supply with our customers' demand," said Patrick Lindner, chief innovation officer and president, Consumer Packaging for WestRock. "Given current economic conditions and anticipated supply needs, we believe that reducing production capacity at the Evadale mill will improve its competitiveness while enabling WestRock to more efficiently serve our customers."

About WestRock

WestRock (NYSE:WRK) partners with our customers to provide differentiated 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 release contains forward-looking statements that are based on management's current views and assumptions 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 include statements such as that (i) WestRock plans to reduce the production capacity of its SBS mill system by approximately 200,000 tons, (ii) WestRock plans to shut down one paper machine at its Evadale, Texas, mill (iii) the shutdown of the paper machine is expected to occur by the end of 2020 and will result in a headcount reduction at the mill of 60 employees, (iv) given current economic conditions and anticipated supply needs, WestRock believes reducing capacity at the Evadale mill will improve its competitiveness while enabling WestRock to more efficiently serve our customers. Factors that may affect actual results include, but are not limited to, economic, competitive and market conditions generally, volumes and price levels of purchases by customers, including the impact thereon of the COVID-19 pandemic; and competitive conditions in WestRock's businesses and possible adverse actions of their customers, competitors and suppliers. Please refer to the cautionary statements set forth in Item 1A of WestRock's annual report on Form 10-K for the year ended September 30, 2019 and quarterly report on Form 10-Q for the quarter ended June 30, 2020. WestRock undertakes no duty to update forward-looking statements.

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CONTACT: Investors: James Armstrong, 470-328-6327 Vice President, Investor Relations james.armstrong@westrock.com

CONTACT: John Stakel, 678-291-7901 Senior Vice President, Treasurer john.stakel@westrock.com

CONTACT: Media: Courtney James, 470-328-6397 Manager, Corporate Communications courtney.james@westrock.com