600k tons per year,” said Michael Roxland, senior paper and packaging analyst at Truist Securities, in the note. The industry also is going through a “significant capacity reset” with approximately 2.3 million tons of capacity closures, about 5.5 percent of industry supply, already announced or completed in 2025, he said. Truist and other analysts anticipate more closures in the short to medium term. Given the closures and Green Bay’s multiyear timeline for its expansion to be complete, “we believe the industry is better positioned today to deal with potential new ca- pacity” than in previous quarters, Roxland said. Green Bay Packaging held a groundbreaking ceremony at the Morrilton site last week to mark the start of construc- tion on the expansion. Company executives joined Arkan- sas Gov. Sarah Huckabee Sanders and other community leaders for the event. Leaders said that this is the largest capital investment project in central Arkansas’ history. Green Bay Packaging has made other expansion-relat- ed announcements in the last year, including a land acqui- sition in Arizona, a warehouse lease contract in Illinois and a packaging facility expansion in Germantown, Wisconsin. It also acquired Springfield, Missouri-based SMC Packag- ing Group in June 2024. Most of the privately owned, Wisconsin-based compa- ny’s footprint — which consists of mills, corrugated con- verting and production for folding cartons and coated la- bels — is concentrated in the Midwest and central part of the country.
AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. REGION 42# Kraft liner 26# Semi-Chem. Medium $ 900.00-925. 00 $ 825. 00 -$850.00 U.S. Average CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton. 42# Kraft Liner 26# Semi-Chem Medium East $970.00 $960.00 West $1,015.00 $995.00 REGION
GBP To Invest (CONT’D FROM PAGE 1)
has the potential to double the Morrilton mill’s capacity, the company said. That would put the enhanced capacity at more than 1.03 million tons, according to a June 4 note to investors from Truist Securities. The move is prompting discussions among observers about the company’s timing strategy, considering the cur- rent supply and demand environment and the spate of clo- sures already in 2025. “While additional capacity is negative for container- board supply/demand dynamics and pricing, normalized industry demand growth of 1.0-1.5 percent annually implies that the industry needs capacity growth of about 400-
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June 16, 2025
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