Packaging Corporation of America produces containerboard products and uncoated freesheet (UFS) paper in North America. The company operates eight mills and 86 corrugated products plants and related facilities. The company operates primarily in the United States.
Segments
The company operates through three segments: Packaging, Paper and Corporate and Other.
Packaging
This segment consists of packaging products.
Packaging Products
The company’s containerboard mills produce linerboard and cor...
Packaging Corporation of America produces containerboard products and uncoated freesheet (UFS) paper in North America. The company operates eight mills and 86 corrugated products plants and related facilities. The company operates primarily in the United States.
Segments
The company operates through three segments: Packaging, Paper and Corporate and Other.
Packaging
This segment consists of packaging products.
Packaging Products
The company’s containerboard mills produce linerboard and corrugating medium, which are papers primarily used in the production of corrugated products. The company’s corrugated products manufacturing plants produce a wide variety of corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays with strong visual appeal that help to merchandise the packaged product in retail locations, and honeycomb protective packaging. In addition, the company is a large producer of packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. The company’s products are sustainable and are produced from renewable raw materials, predominately using energy derived from biogenic fuels in its production processes and are recyclable at end-of-life.
During the year ended December 31, 2024, the company’s Packaging segment produced 294 billion square feet (BSF) of containerboard at its mills. The company’s corrugated products manufacturing plants sold 67 BSF of corrugated products.
Facilities
The company manufactures containerboard, which includes a variety of performance and specialty grades, at its containerboard mills. Total annual containerboard capacity was approximately 301 BSF as of December 31, 2024. The following provides more details of the company’s containerboard mills:
Counce
The company’s Counce, Tennessee mill produces kraft linerboard on two machines. The mill can produce basis weights from 26 lb. to 90 lb.
DeRidder
The company’s DeRidder, Louisiana mill produces kraft linerboard on its No. 1 machine and kraft linerboard and corrugating medium on its No. 3 machine. The mill can produce linerboard in basis weights of 26 lb. to 69 lb. and medium in basis weights of 23 lb. to 33 lb.
Filer City
The company’s Filer City, Michigan mill produces corrugating medium on three machines. The mill can produce basis weights from 20 lb. to 47 lb.
Jackson
The company’s Jackson, Alabama mill produces kraft linerboard on its No. 3 machine and kraft linerboard and corrugating medium on its No. 1 machine. The mill can produce linerboard in basis weights from 22 lb. to 34 lb. and medium in basis weights from 23 lb. to 33 lb. The company converted the mill from production of UFS to production of containerboard in 2021 and completed work to optimize the mill for containerboard production in 2024.
Tomahawk
The company’s Tomahawk, Wisconsin mill produces corrugating medium on two machines. The mill can produce basis weights from 23 lb. to 47 lb.
Valdosta
The company’s Valdosta, Georgia mill produces kraft linerboard on one machine. The mill can produce basis weights from 35 lb. to 96 lb.
Wallula
The company’s Wallula, Washington mill produces corrugating medium on its No. 2 machine and kraft linerboard and corrugating medium on its No. 3 machine. The mill can produce medium in basis weights from 23 lb. to 33 lb. and linerboard in basis weights from 31 lb. to 52 lb.
As of December 31, 2024, the company produced corrugated and protective packaging products at 86 facilities, and operated a technical and development center, seven regional design centers, a rotogravure printing operation, and a complement of packaging supplies and distribution centers. Of the 86 manufacturing facilities, 58 are combining operations, commonly called corrugated plants, which manufacture corrugated sheets and finished corrugated packaging products, 27 are sheet plants, which procure combined sheets and manufacture finished corrugated packaging products, and one is a corrugated sheet-only manufacturer.
Corrugated products plants tend to be in close proximity to customers to minimize freight costs. Each of the company’s plants serves a market radius of approximately 150 miles. The company’s sheet plants are generally located in close proximity to its larger corrugated plants, which enables the company to offer additional services and converting capabilities, such as small volume and quick turnaround items.
Sales, Marketing, and Distribution
The company’s corrugated products are primarily sold directly through its sales and marketing organization. The company has local sales teams led by a sales manager at most of its corrugated manufacturing facilities to support the company’s local customers. The company also have national account managers who serve customers with a national presence. In addition to the company’s direct sales and marketing personnel, it utilizes design and structural engineers to support the company’s sales efforts. These individuals are located at both the company’s corrugated plants and regional design centers. Marketing support is provided at its corporate headquarters.
The company’s containerboard sales group is responsible for linerboard and corrugating medium order processing and supply to its corrugated plants, to outside domestic customers, and to export customers. These personnel also coordinate and execute all containerboard trade agreements with other containerboard manufacturers.
Containerboard produced in the company’s mills is primarily shipped by rail or truck. The company’s corrugated products are delivered by truck due to proximity of its corrugated manufacturing operations to customers and load size. The company’s corrugated manufacturing operations typically serve customers within a 150-mile radius.
Competition
On a national level, the company’s primary competitors are International Paper, Smurfit WestRock, and Georgia-Pacific LLC.
Paper
This segment produces UFS in North America. The company manufactures and sells papers, including both commodity and specialty papers, which may have custom or specialized features such as colors, coatings, high brightness, and recycled content. The company’s papers consist of communication papers, including cut-size office papers, and printing and converting papers. The company’s products are sustainable and are produced from renewable raw materials, predominately using energy derived from biogenic fuels in its production processes and are recyclable at end-of-life.
Facilities
The company has one paper mill located in International Falls, Minnesota that produces both commodity and specialty papers on two paper machines.
Sales, Marketing, and Distribution
The company’s papers are sold primarily through its sales and marketing organization. The company ships to customers both directly from its mills and through distribution centers and a network of outside warehouses by rail or truck. This allows the company to respond quickly to customer requirements.
Customers
The company has about 50 customers in approximately 200 locations. These customers include office products distributors and retailers, paper merchants, and envelope and other converters. The company has established long-term relationships with many of its customers. ODP Corporation (‘ODP’), formerly Office Depot, Inc., along with its subsidiaries and affiliates, is the company’s largest customer in the Paper segment.
Competition
The company’s largest competitors include Domtar Corporation, a division of Paper Excellence, and Sylvamo Corporation.
Corporate and Other
This segment includes transportation assets, such as rail cars and trucks, which the company uses to transport some of its products to and from its manufacturing sites, and assets related to a 50% owned variable interest entity, Louisiana Timber Procurement Company, L.L.C. (LTP).
History
Packaging Corporation of America was founded in 1867. The company was incorporated in 1999.