RockTenn Permanently Closes its Matane, Quebec Containerboard Mill

March 2, 2012 - RockTenn announced the permanent closure of its Matane, Quebec containerboard mill. RockTenn ceased production at the mill in late January 2012.

The Matane mill, which RockTenn acquired in May 2011 as part of the Smurfit-Stone acquisition, had 176,000 tons per year of recycled corrugated medium production capacity.

RockTenn said that it took this action to balance its overall containerboard mill system capacity to match system demand, in light of major steps the company is taking to realign system capacity and lower average system costs.

According to RockTenn, the Matane mill was the highest cost mill in the company's containerboard mill system after accounting for all costs, including freight and overhead.

RockTenn said it intends to work with the City of Matane and other interested parties to determine the best alternative use for the site.

RockTenn believes that the containerboard system cost savings from the closure of the Matane mill will be approximately $16 million per year.

SOURCE: RockTenn