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Released February 10, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The cause of an explosion that killed three contract workers Wednesday at Packaging Corporation of America's (NYSE:PKG) (PCA) DeRidder, Louisiana, paper mill is under investigation. The incident involved annual repair work being performed on piping in the pulp mill area of the facility, according to the company. Industrial Info is tracking nine capital projects worth more than $88 million at the DeRidder facility.
The DeRidder mill has two containerboard machines, which produced 874,000 tons in 2015. Overall, PCA produces more than 3.7 million tons of kraft linerboard and semi-chemical corrugated medium per year.
At the time of the explosion, the plant's D1 containerboard machine was down for its annual outage, according to the company. The D3 machine was running and continues to operate.
According to news media accounts, the contractors were working on a tank that exploded.
PCA estimates the annual outage work will be delayed by a week as a result of the explosion, and the mill will then resume full operation.
PCA is the fourth-largest producer of containerboard in the U.S. and the third-largest producer of uncoated freesheet in North America, based on production capacity. The company's Packaging segment includes five containerboard mills.
The company expects capital expenditures for 2017 to run between $310 million and $325 million, compared with $274 million in 2016.
PCA Chief Executive Officer Mark Kowlzan said during the company's latest earnings presentation that the DeRidder Mill will undergo debottlenecking work that is expected to be completed in 2018.
"I don't want to call out the incremental capacity," Kowlzan told investment analysts during the January 31 presentation. "All I would say is that it allows us to continue the growth trajectory that we have plans to look for the next two years."
Among the DeRidder projects being tracked by Industrial Info is a potential natural gas-fired boiler addition. PCA has begun economic evaluation and justification for the $50 million project as part of a multi-year capital plan. For more information, see Industrial Info's project report.
PCA said in January that that it benefited in 2016 from optimization efforts at the DeRidder containerboard mill and white paper mills. Segment income for 2016 totaled $780.3 million, compared with $750 million in 2015.
Industrial is tracking more than 1,100 Pulp, Paper & Wood Industry capital projects in North America worth nearly $17 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The DeRidder mill has two containerboard machines, which produced 874,000 tons in 2015. Overall, PCA produces more than 3.7 million tons of kraft linerboard and semi-chemical corrugated medium per year.
At the time of the explosion, the plant's D1 containerboard machine was down for its annual outage, according to the company. The D3 machine was running and continues to operate.
According to news media accounts, the contractors were working on a tank that exploded.
PCA estimates the annual outage work will be delayed by a week as a result of the explosion, and the mill will then resume full operation.
PCA is the fourth-largest producer of containerboard in the U.S. and the third-largest producer of uncoated freesheet in North America, based on production capacity. The company's Packaging segment includes five containerboard mills.
The company expects capital expenditures for 2017 to run between $310 million and $325 million, compared with $274 million in 2016.
PCA Chief Executive Officer Mark Kowlzan said during the company's latest earnings presentation that the DeRidder Mill will undergo debottlenecking work that is expected to be completed in 2018.
"I don't want to call out the incremental capacity," Kowlzan told investment analysts during the January 31 presentation. "All I would say is that it allows us to continue the growth trajectory that we have plans to look for the next two years."
Among the DeRidder projects being tracked by Industrial Info is a potential natural gas-fired boiler addition. PCA has begun economic evaluation and justification for the $50 million project as part of a multi-year capital plan. For more information, see Industrial Info's project report.
PCA said in January that that it benefited in 2016 from optimization efforts at the DeRidder containerboard mill and white paper mills. Segment income for 2016 totaled $780.3 million, compared with $750 million in 2015.
Industrial is tracking more than 1,100 Pulp, Paper & Wood Industry capital projects in North America worth nearly $17 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
