Packaging Corp of America to shut Wallula paper machine; $205 million charges
On December 3, 2025, Packaging Corp of America said it will permanently shut the No. 2 paper machine and kraft pulping facilities at its Wallula, Washington containerboard mill, with the work expected to finish by the end of the first quarter of 2026. The company estimates $205 million in pre-tax restructuring charges, mostly recorded in the fourth quarter of 2025 and first quarter of 2026, which will reduce reported earnings for those periods. The mill's annual capacity falls by 250,000 tons, and the company says production cost there should drop by about $125 per ton from 2025 levels.
Key points
- Pre-tax restructuring charges estimated at $205 million, including about $165 million of non-cash impairment and accelerated depreciation and $40 million of cash charges
- No. 2 paper machine and kraft pulping facilities to be shut; No. 3 paper machine and recycled pulping facilities continue operating; completion expected by end of Q1 2026
- About 200 positions expected to be eliminated
- Mill capacity reduced by 250,000 tons per year; lower production cost of about $125 per ton versus 2025 levels
The filing
Written by AI on Nov 8, 2026, 12:42 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on December 04, 2025.
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