Oregon’s Governor Signs EPR Bill Into Law
Sonoco’s Project Horizon To Be Completed In 2022
Oregon SB 582, the extended producer responsibility (EPR) for paper and packaging bill, was signed into law by Governor Kate Brown on August 6, 2021. The bill will require that packaging and printing & writing papers be re- cycled through one or more producer responsibility orga- nizations (PROs). AF&PA will work with its Oregon contract lobbyist to develop a strategy for engaging the Depart- ment of Environmental Quality in the regulatory process. On July 9th, AF&PA submitted a letter to the Governor raising our concerns with the bill and requesting that the paper industry be engaged in the regulatory process and have representation on the newly established Oregon Re- cycling System Advisory Council. Contact erin_hall@afandpa.org with questions.
Project Horizon, Sonoco’s $115 million investment to transform its corrugated medium machine in Hartsville, South Carolina, to a state-of-the-art uncoated recycled paperboard operation with annual production capacity of 180,000 tons, is expected to be completed by the end of the second quarter of 2022, the company reported. A key element is construction of a new stock prep sys- tem to provide approximately 650 tons per day of recycled fiber to the rebuilt #10 machine and other Hartsville cyl- inder machines. The new system will allow for increased consumption of lower-cost mixed paper, along with OCC and should be operational in October 2021. 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 warehouse in the Hartsville complex. Sonoco will be exiting the corrugated medium market by early 2022 and expects URB capacity through its U.S. and Cana- da mill network to remain neutral at ap- proximately 1.2 million tons. Based on the progress of Project Horizon, the company now expects to permanently shut down its Hartsville #1 and #9 URB cylinder machines which will reduce annual capacity by ap- proximately 70,000 tons. The exact timing of the closures will depend on market con- ditions as well as the start-up of the convert- ed Hartsville #10 machine. In 2020, Sonoco permanently shut down a 30,000 tons/year machine in Hartsville and its 95,000 tons/ year Trent Valley, Ontario, Canada mill. The new Hartsville machine is being de- signed with the goal of being the lowest cost URB machine in the world, with the capabil- ity of producing a wide range of high-value paper grades to service Sonoco’s industrial and consumer converted products busi- nesses and external trade customers. Proj- ect Horizon is projected to drive $30 million in annual cost savings by 2023, ensure the long-term viability of the Hartsville mill com- plex and place its U.S. and Canada URB mill system into the top quartile of performance. Sonoco is one of the world’s leading pro- ducers of URB with the capability of produc- ing approximately two million tons annually. The company is also one of the largest URB producers in the U.S. and Canada operating 11 mills and 18 machines in South Carolina, Tennessee, Virginia, Massachusetts, Kan- sas, Wisconsin, California, Washington and Ontario, Canada.
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10 August 23, 2021
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