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Packaging Corp.'s Counce Mill Incurred Major Outage

Nov. 8, 2007 - Packaging Corp. of America late yesterday said that its Counce, Tennessee linerboard mill incurred a major, unplanned outage beginning on October 24, 2007. The entire mill was down for 2˝ days and experienced operational difficulties through the end of the month.

The outage resulted in about 11,000 tons of lost production as well as significant additional operating costs which will adversely impact fourth quarter earnings by about $0.04 per share, PCA said.

According to the company, the outage was the result of a total mill power failure which was related, in part, to an extended period of heavy rain and the subsequent failure of a valve which led to the contamination of the mill’s steam and boiler water systems.

Paul T. Stecko, chairman and CEO, said, “Although this outage resulted in significant lost production and additional costs, we were fortunate that there was no major equipment damage, and the mill was up and running at full capacity by November 1.”

PCA's Counce mill houses two linerboard machines and is the company's highest volume mill, producing about 998,000 tons per year. The #1 paper machine primarily produces grades 96# through 42#, including many high-performance, wet-strength, and other specialty grades. The #2 paper machine is a lightweight linerboard machine, producing grades from 42# to 31#.

SOURCE: Packaging Corp. of America




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