KapStone Paper and Packaging Corp., an Illinois-based manufacturer that produces unbleached kraft paper and packaging products, is investing $6 million in new equipment at its facility in Cherokee County.
The facility, which is located in Cowpens, includes a state-of-the-art paper mill that produces recycled linerboard and medium, according to a news release. The new investment will allow the company to install a new hydraulic dilution control headbox and bottom-ply chain conveyor, increasing the speed, efficiency, and quality of its products.
“KapStone team members are proud to contribute to the success of our customers and communities. Investing in our industry-leading recycled paper mill in Cowpens demonstrates our continued commitment to Cherokee County,” said Steven Leahy, vice president of mill operations at KapStone’s facility in Cowpens. “Working together with our state and local partners, we are excited about the future of our business and the benefits it can provide for all of our stakeholders.”
Founded in 2005, KapStone produces and distributes containerboard, corrugated products, and specialty papers, including liner and medium containerboard, kraft paper, and saturating kraft. It employs 6,200 people in its 91 locations in North America. The company also owns Victory Packaging, which operates in the U.S., Canada, and Mexico.
In January, Atlanta-based WestRock Co., one of the largest packaging companies in the United States, acquired KapStone for a total enterprise value of $4.9 billion. The company plans to assume and refinance $1.36 billion in KapStone’s net debt.
The acquisition, which is contingent upon approval by KapStone’s stockholders, is expected to close in September. It could generate about $200 million in savings for WestRock by the end of fiscal year 2021, according to a news release.
“KapStone is a great fit with WestRock. Their complementary corrugated packaging and distribution operations will enhance WestRock’s ability to serve customers across our system, particularly in the western United States, and the addition of their specialty kraft paper products that we do not make enhances our differentiated portfolio of paper and packaging solutions,” said Steve Voorhees, chief executive officer of WestRock.
