Packaging Corporation of America Upgrading Woodyard at Southeastern Mill

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Packaging Corporation of America (PCA) (NYSE:PKG)(Lake Forest, Illinois) has started construction on an $8 million capital project to upgrade the woodyard at a pulp and paper mill in Counce, Tennessee. The scope of the project involves a new chip silo, blow tank, and blow line with 10"-12" diameter piping, primary and secondary screening equipment, and two new refiners. PCA's board approved the project in the fall of 2004, and construction commenced shortly thereafter. The new chip screening line will come online in March 2005.

The Counce mill has two linerboard machines and is PCA's highest volume mill, producing about 950 metric tons annually. The No. 1 paper machine primarily produces heavyweight grades (96# through 46#), including many high-performance, wet-strength, and other specialty grades. The No. 2 paper machine is a world-class, state-of-the-art, lightweight linerboard machine, producing grades from 42# to 31.

Of the 4,500 major industrial plants located in the Southeast Market Region, which is comprised of Alabama, Florida, Georgia, Mississippi, and Tennessee, 500 are forest products related plants. In Tennessee alone, there are 95 forest products plants, or 10% of the state's total plant count of 954.

Packaging Corporation of America (PCA) is a world-class manufacturer of containerboard and corrugated packaging. Its focus on a single line of business not only differentiates it from its major competitors, but also helps it achieve levels of operational excellence that are highly respected within the industry. With 2003 net sales of $1.7 billion and 7,900 employees, PCA produced 2.2 million tons of containerboard and shipped 28.1 billion square feet of corrugated products.

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Industrilainfo.com coverage of the forest products industry in the United States and Canada includes data on over 3,300 major manufacturing plants that produce pulp, paper, and wood products. Industry sectors include tissue, newsprint, coated and uncoated papers, packaging and industrial converting, lumber, plywood, and reconstituted wood products such as particleboard, medium density fiberboard (MDF) and oriented strand board (OSB).

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