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Smurfit-Stone to Shut Containerboard Machine in Arizona

June 27, 2008 - Smurfit-Stone Container said that it will cease operations of its containerboard machine at the Snowflake, Arizona, mill no later than October 15, 2008.

The Snowflake mill includes two newsprint machines owned by Catalyst Paper Corporation and one containerboard machine owned by Smurfit-Stone but managed by Catalyst under a 10-year agreement set to expire in October.

Smurfit-Stone said that it has issued notice to Catalyst of its intent to permanently cease operations of its paper machine, which has the capacity to produce 135,000 tons of containerboard medium annually.

"The Snowflake containerboard machine represents our highest cost medium capacity," said Steven J. Klinger, president and COO. "Given mounting inflationary cost pressures related to energy, freight and fiber, it is imperative we continue to take the necessary actions to reduce our operating costs. Through our on-going mill system optimization efforts, we are well structured to serve all Snowflake containerboard customers from other Smurfit-Stone mills."

SOURCE: Smurfit-Stone Container Corp.




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