WALLULA, Washington — Packaging Corporation of America (PCA) announced a partial shutdown of its Wallula containerboard plant that will cut production by nearly half. The move will result in 200 layoffs at the plant along the Columbia River in western Walla Walla County, southeast of Pasco. Lake Forest, Illinois-based PCA said it will permanently shut down its No. 2 paper machine and kraft pulping facilities. It will continue to operate its No. 3 paper machine and recycled pulping facilities at the site. PCA operates 10 mills and 92 corrugated products plants and related facilities. …The net result will reduce the plant’s capacity to 285,000 tons, a reduction of 250,000 tons. The shutdown will be completed by the end of the first quarter of 2026. ”Wood fiber and purchased power costs are by far the highest in our system,” said Mark Kowlzan, CEO. PCA indicated it would move some production to lower-cost facilities.
Related coverage:
- By Kaie Pyzyk in Packaging Dive: PCA to shut down machines in Washington, affecting 200 jobs