WestRock's Tacoma facility has been a cornerstone of the local economy for years, but now the company has announced plans to close the site. The closure is expected to impact hundreds of employees.
The closure is a result of WestRock's efforts to consolidate operations and improve efficiency, according to the company. This decision will likely have a ripple effect on the local community.
The closure is scheduled to take place in the coming months, with a specific date not yet announced. Employees will receive support and resources to aid in their transition.
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WestRock Tacoma Facility Closure
The WestRock Tacoma facility is shutting down due to high operating costs and the need for significant capital investment.
Production at the mill will cease by September 30, 2023, after nearly 100 years of operation.
The mill consumes about 650 tons per day of OCC from recycling programs and has an OCC re-pulping and recycling facility on site.
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WestRock will take a $345 million charge to close the plant, including about $247 million in asset write-downs, $12 million in severance, and $86 million in other restructuring costs.
About 400 employees will be affected by the closure, and the company is committed to assisting them in exploring alternative roles at other WestRock facilities or nearby companies.
The closure will result in the loss of about 60,000 tons of pulp and 25,000 tons of specialty grade capacity.
WestRock's CEO, David Sewell, stated that the company is working to optimize its operational footprint and consolidate production to improve its return on invested capital.
The decision to close the Tacoma mill is part of WestRock's broader consolidation strategy, which aims to streamline operations and drive growth in attractive markets.
Regulatory challenges have also contributed to the company's decision to close the Tacoma facility, including fines levied by Washington agencies for air quality and worker safety violations.
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Closure Details
The Tacoma paper mill will cease operations by the end of September. This decision was made by WestRock Company, the corporate owner of the mill.
The mill will shut down completely on September 30. This means that all operations will come to a halt.
Approximately 400 individuals currently work at the mill. These employees will be affected by the closure.
WestRock Company has offered to assist the employees in exploring potential roles at other WestRock facilities. This support is a commitment to helping the affected workers during this challenging period.
The company has faced regulatory challenges in recent years, including fines from Washington agencies. One instance was related to an air quality violation, and the other was due to alleged negligence during the COVID-19 pandemic at a Longview facility.
Frequently Asked Questions
What does the company WestRock do?
WestRock is a leading provider of paper and packaging solutions, manufacturing a range of products including containerboard, paperboard, and pulp products. Their products serve various industries, from retail to manufacturing, with innovative packaging solutions.
Does Tacoma still have a paper mill?
No, Tacoma, Washington will no longer have a paper mill after WestRock Company permanently ceases operations by September 30, 2023.
Is WestRock a good company to work for?
WestRock has a generally positive work environment, with 62% of employee reviews being positive and 90% of Engineering team reviews being positive. However, employee experiences may vary by department.
Why is WestRock closing plants?
WestRock is closing plants due to low demand, which is prompting the company to restructure its operations. The closures are part of a larger effort to adapt to changing market conditions.
Is the aroma of tacoma gone?
The "aroma of Tacoma" has largely dissipated, thanks to the closure of a major manufacturing plant over a year ago. However, the air quality in Tacoma is still worth monitoring.
Sources
- https://resource-recycling.com/recycling/2023/08/07/westrock-shuts-down-washington-paper-mill/
- https://itaddaily.com/2023/08/22/westrock-furthers-its-consolidation-efforts-with-plans-to-close-tacoma-washington-paper-mill/
- https://www.marketscreener.com/quote/stock/SMURFIT-WESTROCK-PLC-40311477/news/WestRock-Announces-Plans-to-Close-Tacoma-Wash-Paper-Mill-44486016/
- https://investorwelcome.com/tacomas-paper-mill-to-cease-operations-in-september/
- https://www.nwpb.org/2023/08/25/westrock-paper-mill-closing-in-tacoma-job-losses-utility-impacts-and-the-end-of-the-tacoma-aroma/
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