Packaging Corporation of America
Packaging Corp of America Announces Mill Shutdown and Restructuring
Summary
Packaging Corporation of America announced on December 3, 2025, the permanent shutdown of the No. 2 paper machine and kraft pulping facilities at its Wallula, Washington containerboard mill, which is expected to be completed by the end of the first quarter of 2026. The company estimates this will result in pre-tax restructuring charges of $205 million, with $165 million in non-cash impairment and accelerated depreciation charges and $40 million in cash charges for contract termination, severance, and other charges. The company expects a reduction in headcount of approximately 200 positions. The shutdown is intended to lower production costs and improve efficiency.
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About Packaging Corporation of America
Packaging Corporation of America is a premier manufacturer and provider of packaging solutions in the United States. The company specializes in producing high-quality containerboard and corrugated packaging products. Its primary function is to offer sturdy and reliable packaging solutions that support businesses across various industries, ensuring their products are safely packaged for transport and storage. Known for its efficient and sustainable manufacturing processes, Packaging Corporation of America plays a significant role in the supply chain, servicing sectors like food and beverage, automotive, and electronics. With its extensive network of plants and distribution centers, the company ensures timely delivery and responsiveness to market demands. Headquartered in Lake Forest, Illinois, Packaging Corporation of America emphasizes eco-friendly practices, contributing to the growing trend of sustainability in packaging. Its commitment to quality and environmental responsibility makes it a notable entity within the industrial and materials segment of the financial market, reflecting its position as a vital component of modern logistics and commerce.
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