Board Converting News, July 19, 2021

Sonoco Provides (CONT’D FROM PAGE 1 )

Core Competency

To reduce paper finishing and warehouse complexity and cost, Sonoco is also building a new offline winding operation and 102,000-square-foot finished goods ware- house on the Hartsville complex. The new offline winding department will incorporate new state-of-the-art equip- ment and should create 16 new positions. As previously announced, Sonoco will be exiting the corrugated medium market by early 2022 and expects URB capacity through its U.S. and Canada mill network to remain neutral at approximately 1.2 million tons. Based on the progress of Project Horizon, the company now ex- pects to permanently shut down its Hartsville #1 and #9 URB cylinder machines, which will reduce annual capaci- ty by approximately 70,000 tons. The exact timing of the closures will depend on market conditions, as well as the start-up of the converted Hartsville #10 machine. The new Hartsville machine is being designed with the goal of being the lowest cost URB machine in the world, with the capability of producing a wide range of high-val- ue paper grades to service Sonoco’s industrial and con- sumer converted products businesses and external trade customers. Project Horizon is projected to drive $30 mil- lion in annual cost savings by 2023, ensure the long-term viability of the Hartsville paper mill complex and place its U.S. and Canada URB mill system into the top quartile of performance from a cost perspective, Davis said.

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July 19, 2021

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