Profile: Packaging Corp of America (PKG)
27 Nov 2015
Packaging Corporation of America (PCA), incorporated on January 25, 1999, is a producer of containerboard and white papers. The Company operates eight mills and 99 corrugated products manufacturing plants. The Company’s operations are primarily in the United States and it has converting operations in Europe, Mexico, and Canada. The Company operates through three segments: Packaging, Paper, and Corporate and Other.
The Company’s corrugated products manufacturing plants produce a variety of corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes, and displays. The Company produces packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. As of December 31, 2014, its Packaging segment produced 3.5 million tons of containerboard at its mills. The Company manufactures its Packaging products at five containerboard mills, one containerboard machine corrugated manufacturing operations, and protective packaging operations.
The Company’s Counce, Tennessee, mill produces kraft linerboard. As of December 31, 2014, the mill produced 1,079,000 tons of kraft linerboard on two paper machines. Its DeRidder, Louisiana, mill produces kraft linerboard on its No. 1 machine and linerboard and medium on its No. 3 machine. As of December 31, 2014, the No. 1 machine produced 601,000 tons of kraft linerboard and No. 3 machine produced 46,000 tons of medium and 12,000 tons of linerboard. Its Valdosta, Georgia, mill produces kraft linerboard. As of December 31, 2014, Valdosta produced 573,000 tons of kraft linerboard. Its Tomahawk, Wisconsin, mill produces semi-chemical corrugating medium. As of December 31, 2014, the mill produced 555,000 tons of semi-chemical corrugating medium on two paper machines. Its Filer City, Michigan, mill produces semi-chemical corrugating medium. As of December 31, 2014, the mill produced 444,000 tons on three paper machines. Its Wallula, Washington, mill produces white paper and corrugating medium. As of December 31, 2014, the mill produced 142,000 tons of corrugating medium.
The Company operates 99 corrugated manufacturing operations, a technical and development center, eight regional design centers, a rotogravure printing operation, and a complement of packaging supplies and distribution centers. Of the 99 manufacturing facilities, 65 manufacture corrugated sheets and finished corrugated containers, 33 are sheet plants, which procure combined sheets and manufacture finished corrugated containers, and one is a corrugated sheet-only manufacturer. The Company has corrugated manufacturing operations in 32 states in the United States. The Company also has Hexacomb converting operations outside of the continental United States, including three facilities in Europe, two in Mexico, and one in Canada. It sells corrugated products to approximately19,000 customers in over 30,000 locations.
The Company’s Paper segment operates under the trade name Boise Paper. The Company manufactures and sells white papers, including both commodity and specialty papers. White papers consist of communication papers (cut-size office papers and printing and converting papers) and pressure sensitive papers, including release liners, which its customers use to produce labels for use in consumer and commercially packaged products. The Paper segment also produces market pulp on one paper machine at its Wallula, Washington, mill, which is sold to outside customers to produce paper products. The Company operates three white paper mills located in the United States. Its Jackson, Alabama, mill produces both commodity and specialty papers. As of December 31, 2014, the mill produced 494,000 tons of white papers. Its International Falls, Minnesota, mill produces both commodity and specialty papers. As of December 31, 2014, the mill produced 457,000 tons of white papers. Its Wallula, Washington, mill produces pressure sensitive papers and a variety of white paper grades. As of December 31, 2014, the mill produced 193,000 tons of white papers and 100,000 tons of market pulp.
Corporate and Other
The Company’s Corporate and Other segment includes corporate support staff services and related assets and liabilities, and foreign exchange gains and losses. This segment also includes transportation assets, such as rail cars and trucks, which it uses to transport its products from its manufacturing sites and assets related to a 50% owned variable interest entity, Louisiana Timber Procurement Company, L.L.C. (LTP).
The Company competes with Domtar Corporation, International Paper Company, Rock-Tenn Company, Georgia-Pacific LLC, and KapStone Paper and Packaging Corporation.
Packaging Corp of America
1955 W FIELD CT
LAKE FOREST IL 60045