Profile: KapStone Paper and Packaging Corp (KS.N)
KapStone Paper and Packaging Corporation, incorporated on April 15, 2005, is engaged in the production of containerboard, corrugated products and specialty paper. The Company operates through two segments: Paper and Packaging, and Distribution. The Company operates over four paper mills, approximately three in the Southeastern region and one in the Pacific Northwest region of the United States. It produces approximately 2.7 million tons of containerboard and specialty paper at its mills in North Charleston, South Carolina; Roanoke Rapids, North Carolina; Cowpens, South Carolina, and Longview, Washington. Hardwood pulp is produced in North Charleston for the production of DuraSorb saturating kraft. It sells unbleached folding carton board under the Kraftpak trade name. The Company operates over 20 corrugated products manufacturing plants, consists of approximately 10 box plants, six sheet plants and two sheet feeder plants. Box plants operate as combining operations that manufacture corrugated sheets and finished corrugated products. Sheet feeder plants have a corrugator machine and manufacture corrugated sheets, which are shipped to sheet or box plants. Sheet plants have various machines that convert corrugated sheets, purchased either from the Company's operations or third parties, into finished corrugated products. Plants with a corrugating machine have total capacity of approximately 18 billion square feet (BSF).
The Company produces a range of products ranging from basic corrugated shipping containers to specialized packaging. It also has multi-color printing capabilities to make high-impact graphics boxes and displays. Containerboard and specialty paper produced in its paper mills is shipped by rail or truck to customers in the United States, and is shipped by truck to nearby ports and then by ocean vessel to its export customers. The Company sells its products directly to end users and converters, as well as through sales agents. Its corrugated and packaging products and services are sold through an internal sales and marketing organization. The Company's corrugated operations focus on supplying both high-volume commodity products and specialized packaging.
Paper and Packaging
The Company's Paper and Packaging segment manufactures and sells a range of container boards, corrugated products and specialty paper for industrial and consumer markets. Its corrugated products manufacturing plants produce and sell over 849,000 tons of corrugated products in the United States. Containerboard, consisting of linerboard and corrugated medium, is primarily used to manufacture corrugated containers for packaging products. The primary end-use markets for corrugated products include food, beverages and agricultural products; general retail and wholesale trade; paper products; miscellaneous manufacturing; petroleum, plastic, synthetic, and rubber products, and appliances, vehicles, and metal products.
The Company's specialty paper products include kraft paper, saturating kraft and unbleached folding carton board. It produces over three categories of kraft paper, including multiwall paper, specialty products and lightweight paper. Multiwall paper is used to produce bags for agricultural products, pet food, baking products, cement and chemicals. It offers FibreShield and TEA-Kraft lines of products. The Company also manufactures durable flat multiwall sack paper for a range of end-use applications. Its specialty paper products are designed to meet the needs of range of customers and end uses. Its specialty paper products are manufactured for a range of converters, including laminators, coaters, insulation manufacturers, agricultural product processors and food product packaging producers. The Company's lightweight virgin furnished papers are produced from specifically blended wood chip recipes. These wood chip and pulp recipes are designed to develop paper properties important for a specialty packaging end uses and coating base paper applications. Its product line, FibreGreen, is composed of old corrugated containers (OCC) processed in the Company's OCC facility and are available in a range of basis weights. Saturating kraft is used in various industries across the world, including construction, electronics manufacturing and furniture manufacturing. Unbleached folding carton board is a low density virgin fiber board.
Distribution segment, which operates under the Victory and Golden State Container trade names, provides its customers with packaging solutions and services, and distributes corrugated packaging materials, as well as other specialty packaging materials, such as plastics, wood, void fill, tapes and stretch wraps. The Distribution segment, through Victory Packaging, L.P.'s (Victory's) operations, works with customers to manage and facilitate the various aspects of packaging and distribution, including packaging design, creation, storage, delivery and management. Based in Houston, Texas, Victory has approximately 60 warehouses and distribution facilities, with the majority in the United States, over three in Canada and over 10 in Mexico, and operates in California under the name of Golden State Container. The Distribution segment's national network includes approximately seven million square feet of warehouse space and approximately 220 delivery vehicles.
The Company competes with International Paper Company, Koch Industries, Inc., Rock-Tenn Company, WestRock Company and Packaging Corporation of America.
KapStone Paper and Packaging Corp
1101 Skokie Blvd Ste 300
NORTHBROOK IL 60062-4124