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These excerpts taken from the PKG 10-K filed Feb 27, 2009. PCA
Operations and Products
Our two linerboard mills can manufacture a broad range of
linerboard grades ranging from 26 lb. to 96 lb. Our two
semi-chemical corrugating medium mills can manufacture grades
ranging in weight from 20 lb. to 47 lb. Mill capacities
described below are estimated based on expected mix of paper
basis weights. All four of our mills have completed an extensive
independent review process to become ISO 9002 certified. ISO
9002 is an international quality certification that verifies a
facility maintains and follows stringent procedures for
manufacturing, sales and customer service.
The following four paragraphs describe our containerboard
mills’ annual practical maximum capacity, 2008 actual
production and production capabilities.
Counce. Our Counce, Tennessee mill is one of
the largest kraft linerboard mills in the United States. Its
estimated production capacity, as reported to the American
Forest and Paper Association (“AF&PA”), is
approximately 1,007,000 tons per year. In 2008, we produced
970,000 tons of kraft linerboard on two paper machines at
Counce. The mill produces a broad range of basis weights from 26
lb. to 90 lb. The mill also produces a variety of performance
and specialty grades of linerboard.
Valdosta. Our Valdosta, Georgia mill is a
kraft linerboard mill that has an estimated production capacity
of approximately 474,000 tons per year, as reported to the
AF&PA. In 2008, our single paper machine at Valdosta
produced 474,000 tons of kraft linerboard. Valdosta produces
linerboard ranging from 35 lb. to 96 lb.
Tomahawk. Our Tomahawk, Wisconsin mill is one
of the largest semi-chemical corrugating medium mills in the
United States with an estimated production capacity of 581,000
tons per year on three paper machines, as reported to the
AF&PA. In April 2005, we completed the indefinite closure
of our number three paper machine at Tomahawk and currently
operate the remaining two paper machines which have a combined
production capacity of 516,000 tons. In 2008, we produced
502,000 tons of semi-chemical corrugating medium on two paper
machines at Tomahawk. One of the two paper machines we operate
is among the largest corrugating medium machines in the world.
The Tomahawk mill produces a broad range of basis weights from
23 lb. to 47 lb. and a variety of performance and specialty
grades of corrugating medium.
Filer City. Our Filer City, Michigan mill is a
semi-chemical corrugating medium mill with an estimated
production capacity of 413,000 tons on three paper machines, as
reported to the AF&PA. In 2008, we produced 407,000 tons of
corrugating medium at Filer City. Filer City produces
corrugating medium grades ranging in basis weight from 20 lb. to
47 lb.
We operate 67 corrugated manufacturing operations, a technical
and development center, five regional graphic design centers, a
rotogravure printing operation and a complement of packaging
supplies and distribution centers. Of the 67 manufacturing
facilities, 40 operate as combining operations, commonly called
corrugated plants, that manufacture corrugated sheets and
finished corrugated containers. The remaining 27 manufacturing
facilities, commonly called sheet plants, purchase combined
sheets primarily produced at PCA’s combining operations and
manufacture finished corrugated containers.
We have corrugated manufacturing operations in 26 states in
the U.S., with no manufacturing facilities outside of the
continental U.S. Each corrugated plant, for the most part,
serves a market radius that typically averages 150 miles.
Our sheet plants are generally located in close proximity to our
larger corrugated plants, which enables us to offer additional
services and converting capabilities such as small volume and
quick turnaround items.
Table of Contents
We produce a wide variety of products ranging from basic
corrugated shipping containers to specialized packaging such as
wax-coated boxes for the agriculture industry. We also have
multi-color printing capabilities to make high-impact graphics
boxes and displays that offer customers more attractive
packaging.
Timberland
We currently lease the cutting rights to approximately
91,000 acres of timberland located near our Counce and
Valdosta mills. Virtually all of the acres under cutting rights
agreements are located within 100 miles of these two mills,
which results in lower wood transportation costs and provides a
secure source of wood fiber. These leased cutting rights
agreements have terms with over 15 years remaining, on
average.
During 1999 and 2000, PCA sold approximately 800,000 acres
of timberland. We currently have in place supply agreements
covering approximately 359,000 of the 800,000 acres sold.
The majority of the acreage under supply agreement is located in
close proximity to our Counce mill. We currently hold an
approximate 29% equity ownership interest in approximately
51,000 acres owned by Southern Timber Venture, LLC (STV).
This acreage is located primarily in southern Georgia and
northern Florida, near our Valdosta, Georgia mill, and includes
both timberlands and higher beneficial use properties.
In addition to the timberland we manage ourselves, our Forest
Management Assistance Program provides professional forestry
assistance to private timberland owners to improve harvest
yields and to optimize their harvest schedule. We have managed
the regeneration of approximately 125,000 acres by
supplying pine seedlings. In exchange for our expertise, we are
given the right of first refusal over timber sales from those
lands. These private lands include over 145,000 acres of
timberland. We expect to harvest approximately 80,000 cords of
wood from these forests annually.
PCA also participates in the Sustainable Forestry Initiative.
This initiative is aimed at ensuring the long-term health and
conservation of America’s forestry resources. Activities
include limiting tree harvest sizes, replanting harvest acreage,
participating in flora and fauna research and protecting water
streams.
Solid
Wood Facilities
We own and operate one sawmill located in Ackerman, Mississippi.
During 2008, the Ackerman sawmill sold 51 million board
feet of lumber used in the building products and furniture
industries. We also have an air-dry yard operation in
Burnsville, Mississippi that holds newly cut lumber while it
dries.
PCA Operations and Products Our two linerboard mills can manufacture a broad range of linerboard grades ranging from 26 lb. to 96 lb. Our two semi-chemical corrugating medium mills can manufacture grades ranging in weight from 20 lb. to 47 lb. Mill capacities described below are estimated based on expected mix of paper basis weights. All four of our mills have completed an extensive independent review process to become ISO 9002 certified. ISO 9002 is an international quality certification that verifies a facility maintains and follows stringent procedures for manufacturing, sales and customer service. The following four paragraphs describe our containerboard mills’ annual practical maximum capacity, 2008 actual production and production capabilities. Counce. Our Counce, Tennessee mill is one of the largest kraft linerboard mills in the United States. Its estimated production capacity, as reported to the American Forest and Paper Association (“AF&PA”), is approximately 1,007,000 tons per year. In 2008, we produced 970,000 tons of kraft linerboard on two paper machines at Counce. The mill produces a broad range of basis weights from 26 lb. to 90 lb. The mill also produces a variety of performance and specialty grades of linerboard. Valdosta. Our Valdosta, Georgia mill is a kraft linerboard mill that has an estimated production capacity of approximately 474,000 tons per year, as reported to the AF&PA. In 2008, our single paper machine at Valdosta produced 474,000 tons of kraft linerboard. Valdosta produces linerboard ranging from 35 lb. to 96 lb. Tomahawk. Our Tomahawk, Wisconsin mill is one of the largest semi-chemical corrugating medium mills in the United States with an estimated production capacity of 581,000 tons per year on three paper machines, as reported to the AF&PA. In April 2005, we completed the indefinite closure of our number three paper machine at Tomahawk and currently operate the remaining two paper machines which have a combined production capacity of 516,000 tons. In 2008, we produced 502,000 tons of semi-chemical corrugating medium on two paper machines at Tomahawk. One of the two paper machines we operate is among the largest corrugating medium machines in the world. The Tomahawk mill produces a broad range of basis weights from 23 lb. to 47 lb. and a variety of performance and specialty grades of corrugating medium. Filer City. Our Filer City, Michigan mill is a semi-chemical corrugating medium mill with an estimated production capacity of 413,000 tons on three paper machines, as reported to the AF&PA. In 2008, we produced 407,000 tons of corrugating medium at Filer City. Filer City produces corrugating medium grades ranging in basis weight from 20 lb. to 47 lb. We operate 67 corrugated manufacturing operations, a technical and development center, five regional graphic design centers, a rotogravure printing operation and a complement of packaging supplies and distribution centers. Of the 67 manufacturing facilities, 40 operate as combining operations, commonly called corrugated plants, that manufacture corrugated sheets and finished corrugated containers. The remaining 27 manufacturing facilities, commonly called sheet plants, purchase combined sheets primarily produced at PCA’s combining operations and manufacture finished corrugated containers. We have corrugated manufacturing operations in 26 states in the U.S., with no manufacturing facilities outside of the continental U.S. Each corrugated plant, for the most part, serves a market radius that typically averages 150 miles. Our sheet plants are generally located in close proximity to our larger corrugated plants, which enables us to offer additional services and converting capabilities such as small volume and quick turnaround items.
Table of ContentsWe produce a wide variety of products ranging from basic corrugated shipping containers to specialized packaging such as wax-coated boxes for the agriculture industry. We also have multi-color printing capabilities to make high-impact graphics boxes and displays that offer customers more attractive packaging. Timberland We currently lease the cutting rights to approximately 91,000 acres of timberland located near our Counce and Valdosta mills. Virtually all of the acres under cutting rights agreements are located within 100 miles of these two mills, which results in lower wood transportation costs and provides a secure source of wood fiber. These leased cutting rights agreements have terms with over 15 years remaining, on average. During 1999 and 2000, PCA sold approximately 800,000 acres of timberland. We currently have in place supply agreements covering approximately 359,000 of the 800,000 acres sold. The majority of the acreage under supply agreement is located in close proximity to our Counce mill. We currently hold an approximate 29% equity ownership interest in approximately 51,000 acres owned by Southern Timber Venture, LLC (STV). This acreage is located primarily in southern Georgia and northern Florida, near our Valdosta, Georgia mill, and includes both timberlands and higher beneficial use properties. In addition to the timberland we manage ourselves, our Forest Management Assistance Program provides professional forestry assistance to private timberland owners to improve harvest yields and to optimize their harvest schedule. We have managed the regeneration of approximately 125,000 acres by supplying pine seedlings. In exchange for our expertise, we are given the right of first refusal over timber sales from those lands. These private lands include over 145,000 acres of timberland. We expect to harvest approximately 80,000 cords of wood from these forests annually. PCA also participates in the Sustainable Forestry Initiative. This initiative is aimed at ensuring the long-term health and conservation of America’s forestry resources. Activities include limiting tree harvest sizes, replanting harvest acreage, participating in flora and fauna research and protecting water streams. Solid Wood Facilities We own and operate one sawmill located in Ackerman, Mississippi. During 2008, the Ackerman sawmill sold 51 million board feet of lumber used in the building products and furniture industries. We also have an air-dry yard operation in Burnsville, Mississippi that holds newly cut lumber while it dries. These excerpts taken from the PKG 10-K filed Feb 20, 2008. PCA Operations and Products Our two linerboard mills can manufacture a broad range of linerboard grades ranging from 26 lb. to 96 lb. Our two semi-chemical corrugating medium mills can manufacture grades ranging in weight from 21 lb. to 47 lb. All four of our mills have completed an extensive independent review process to become ISO 9002 certified. ISO 9002 is an international quality certification that verifies a facility maintains and follows stringent procedures for manufacturing, sales and customer service. The following four paragraphs describe our four containerboard mills' annual practical maximum capacity, 2007 actual production and production capabilities. Counce. Our Counce, Tennessee mill is one of the largest linerboard mills in the United States. Its production capacity is approximately 1,007,000 tons per year. In 2007, the mill produced 1,028,000 tons of kraft linerboard on its two paper machines. Counce's actual production in 2007 exceeded its capacity due to a production mix consisting of a lower percentage of lightweight linerboard. The mill produces a broad range of basis weights from 26 lb. to 90 lb. The mill also produces a variety of performance and specialty grades of linerboard. Valdosta. Our Valdosta, Georgia mill is a kraft linerboard mill that has a production capacity of approximately 474,000 tons per year. In 2007, the mill's single paper machine produced 479,000 tons of kraft linerboard. Valdosta's actual production slightly exceeded its capacity due to a lower percentage of lightweight linerboard production.Valdosta produces linerboard ranging from 33 lb. to 90 lb. 4 Tomahawk. Our Tomahawk, Wisconsin mill is one of the largest semi-chemical corrugating medium mills in the United States, with production capacity of 581,000 tons per year on three paper machines. In April 2005, we completed the indefinite closure of our number three paper machine at Tomahawk and currently operate the remaining two paper machines, which have a combined production capacity of 516,000 tons. In 2007, the mill produced 517,000 tons of corrugating medium. Tomahawk produces a broad range of basis weights from 23 lb. to 40 lb. and a variety of performance and specialty grades of corrugating medium. Filer City. Our Filer City, Michigan mill is a semi-chemical corrugating medium mill with a production capacity of 413,000 tons on three paper machines. In 2007, the mill produced 422,000 tons of corrugating medium. Filer City's actual production exceeded its capacity due to a reduction in downtime required for maintenance activities and a related increase in productivity. Filer City produces corrugating medium grades ranging in basis weight from 23 lb. to 40 lb. We operate 67 corrugated manufacturing operations, a technical and development center, five regional graphic design centers, a rotogravure printing operation and a complement of packaging supplies and distribution centers. Of the 67 manufacturing facilities, 40 operate as combining operations, commonly called corrugated plants, that manufacture corrugated sheets and finished corrugated containers. The remaining 27 manufacturing facilities, commonly called sheet plants, purchase combined sheets primarily produced at PCA's combining operations and manufacture finished corrugated containers. We have corrugated manufacturing operations in 26 states in the U.S., with no manufacturing facilities outside of the continental U.S. Each corrugated plant, for the most part, serves a market radius that typically averages 150 miles. Our sheet plants are generally located in close proximity to our larger corrugated plants, which enables us to offer additional services and converting capabilities such as small volume and quick turnaround items. We produce a wide variety of products ranging from basic corrugated shipping containers to specialized packaging, such as wax-coated boxes for the agriculture industry. We also have multi-color printing capabilities to make high-impact graphics boxes and displays that offer customers more attractive packaging. PCA Operations and Products Our two linerboard mills can manufacture a broad range of linerboard grades ranging from 26 lb. to 96 lb. Our two semi-chemical The Counce. Our Counce, Tennessee mill is one of the largest linerboard mills in the United States. Its Valdosta. Our Valdosta, Georgia mill is a kraft linerboard mill that has a production capacity of 4 Tomahawk. Our Tomahawk, Wisconsin mill is one of the largest semi-chemical corrugating medium mills Filer City. Our Filer City, Michigan mill is a semi-chemical corrugating medium mill with We We We This excerpt taken from the PKG 10-K filed Mar 1, 2007. Our two linerboard mills can manufacture a broad range of linerboard grades ranging from 26 lb. to 96 lb. Our two semi-chemical corrugating medium mills can manufacture grades ranging in weight from 21 lb. to 47 lb. All four of our mills have completed an extensive independent review process to become ISO 9002 certified. ISO 9002 is an international quality certification that verifies a facility maintains and follows stringent procedures for manufacturing, sales and customer service. The following four paragraphs describe our four containerboard mills’ annual practical maximum capacity, 2006 actual production and production capabilities. Counce. Our Counce, Tennessee mill is one of the largest linerboard mills in the United States. Its production capacity is approximately 991,000 tons per year. In 2006, we produced 1,009,000 tons of kraft linerboard on two paper machines at Counce. Our actual production at Counce in 2006 exceeded the mill’s capacity due to a production mix consisting of a lower percentage of lightweight linerboard. The mill produces a broad range of basis weights from 26 lb. to 90 lb. The mill also produces a variety of performance and specialty grades of linerboard. Valdosta. Our Valdosta, Georgia mill is a kraft linerboard mill that has a production capacity of approximately 472,000 tons per year. In 2006, our single paper machine at Valdosta produced 478,000 tons of kraft linerboard. Valdosta’s actual production slightly exceeded its capacity due to a lower percentage of lightweight linerboard production.Valdosta produces linerboard ranging from 33 lb. to 90 lb. 4 Tomahawk. Our Tomahawk, Wisconsin mill is one of the largest corrugating medium mills in the United States with production capacity of 580,000 tons per year on three paper machines. In April, 2005, we completed the indefinite closure of our number three paper machine at Tomahawk and currently operate the remaining two paper machines which have a combined production capacity of 515,000 tons. In 2006, we produced 519,000 tons of semi-chemical corrugating medium on two paper machines at Tomahawk. One of the two paper machines we operate (our number four paper machine) is among the largest corrugating medium machines in the world. The Tomahawk mill produces a broad range of basis weights from 23 lb. to 40 lb. and a variety of performance and specialty grades of corrugating medium. Filer City. Our Filer City, Michigan mill is a semi-chemical corrugating medium mill with a production capacity of 405,000 tons on three paper machines. In 2006, we produced 397,000 tons of corrugating medium at Filer City. Filer City produces corrugating medium grades ranging in basis weight from 23 lb. to 40 lb. We operate 68 corrugated manufacturing operations, a technical and development center, five regional graphic design centers, a rotogravure printing operation and a complement of packaging supplies and distribution centers. Of the 68 manufacturing facilities, 40 operate as combining operations, commonly called corrugated plants, that manufacture corrugated sheets and finished corrugated containers. The remaining 28 manufacturing facilities, commonly called sheet plants, purchase combined sheets primarily produced at PCA’s combining operations and manufacture finished corrugated containers. The five graphic design centers are located in Fairfield, Ohio; Dallas, Texas; Cranbury, New Jersey; Salisbury, North Carolina and South Gate, California. We have corrugated manufacturing operations in 26 states in the U.S., with no manufacturing facilities outside of the continental U.S. Each corrugator plant, for the most part, serves a market radius that typically averages 150 miles. Our sheet plants are generally located in close proximity to our larger corrugator plants, which enables us to offer additional services and converting capabilities such as small volume and quick turnaround items. We produce a wide variety of products ranging from basic corrugated shipping containers to specialized packaging such as wax-coated boxes for the agriculture industry. We also have multi-color printing capabilities to make high-impact graphics boxes and displays that offer customers more attractive packaging. This excerpt taken from the PKG 10-K filed Feb 21, 2006. PCA Operations and Products
Our two linerboard mills can manufacture a broad range of linerboard grades ranging from 26 lb. to 96 lb. Our two semi-chemical corrugating medium mills can manufacture grades ranging in weight from 21 lb. to 47 lb. All four of our mills have completed an extensive independent review process to become ISO 9002 certified. ISO 9002 is an international quality certification that verifies a facility maintains and follows stringent procedures for manufacturing, sales and customer service. Counce. Our Counce, Tennessee mill is one of the largest linerboard mills in the United States. Its production capacity is approximately 979,000 tons per year. In 2005, we produced 966,000 tons of kraft linerboard on two paper machines at Counce. We produced a broad range of basis weights from 26 lb. to 90 lb. The mill also produces a variety of performance and specialty grades of linerboard. Valdosta. Our Valdosta, Georgia mill is a kraft linerboard mill that has a production capacity of approximately 487,000 tons per year. In 2005, our single paper machine at Valdosta produced 475,000 tons of kraft linerboard. Valdosta produces linerboard ranging from 33 lb. to 90 lb. Tomahawk. Our Tomahawk, Wisconsin mill is the second largest corrugating medium mill in the United States with production capacity of 575,000 tons per year on three paper machines. In 2005, we produced 532,000 tons of semi-chemical corrugating medium at Tomahawk. Our number four paper machine at Tomahawk is among the largest corrugating medium machines in the world. In April, 2005, we completed an indefinite closure of our number three paper machine at Tomahawk. This was done after resuming production on our number one paper machine at Filer City which had been down since July 1998. The machine shutdown at Tomahawk was the result of higher incremental fiber and transportation costs at Tomahawk compared to the same incremental costs to operate the number one machine at Filer City. Tomahawk’s production capacity on the two paper machines remaining in operation is 510,000 tons. Our Tomahawk mill produces a broad range of basis weights from 23 lb. to 40 lb. and a variety of performance and specialty grades of corrugating medium. Filer City. Our Filer City, Michigan mill is a semi-chemical corrugating medium mill with a production capacity of 385,000 tons. In 2005, we produced 375,000 tons of corrugating medium. On January 25, 2005, we resumed operation of our number one paper machine at Filer City and now operate all three paper machines at the mill. Filer City produces corrugating medium grades ranging in basis weight from 23 lb. to 40 lb. We operate 68 corrugated manufacturing operations, a technical and development center, five regional graphic design centers, a rotogravure printing operation and a complement of packaging supplies 6 and distribution centers. Of the 68 manufacturing facilities, 40 operate as combining operations, commonly called corrugated plants, that manufacture corrugated sheets and finished corrugated containers. The remaining 28 manufacturing facilities, commonly called sheet plants, purchase combined sheets primarily produced at PCA’s combining operations and manufacture finished corrugated containers. The five graphic design centers are located in Fairfield, Ohio; Dallas, Texas; Cranbury, New Jersey; Salisbury, North Carolina and South Gate, California. We have corrugated manufacturing operations in 27 states in the U.S., with no manufacturing facilities outside of the continental U.S. Each corrugator plant serves a market radius that typically averages 150 miles. Our sheet plants are generally located in close proximity to our larger corrugator plants, which enables us to offer additional services and converting capabilities such as small volume and quick turnaround items. We produce a wide variety of products ranging from basic corrugated shipping containers to specialized packaging such as wax-coated boxes for the agriculture industry. We also have multi-color printing capabilities to make high-impact graphics boxes and displays that offer customers more attractive packaging. This excerpt taken from the PKG 10-K filed Mar 9, 2005. PCA Operations and Products Our two linerboard mills can manufacture a broad range of linerboard grades ranging from 26 lb. to 96 lb. Our two semi-chemical corrugating medium mills can manufacture grades ranging in weight from 21 lb. to 47 lb. All four of our mills have completed an extensive independent review process to become ISO 9002 certified. ISO 9002 is an international quality certification that verifies a facility maintains and follows stringent procedures for manufacturing, sales and customer service. Counce. Our Counce, Tennessee mill is one of the largest linerboard mills in the United States. Its production capacity is approximately 1,002,000 tons per year. In 2004, we produced 999,000 tons of kraft linerboard on two paper machines at Counce. We produced a broad range of basis weights from 26 lb. to 90 lb. The mill also produces a variety of performance and specialty grades of linerboard. Valdosta. Our Valdosta, Georgia mill is a kraft linerboard mill that has a production capacity of approximately 463,000 tons per year. In 2004, our single paper machine at Valdosta produced 457,000 tons of kraft linerboard. Valdosta produces linerboard ranging from 33 lb. to 90 lb. Tomahawk. Our Tomahawk, Wisconsin mill is the second largest corrugating medium mill in the United States with production capacity of 573,000 tons per year. In 2004, we produced 572,000 tons of semi-chemical corrugating medium on three paper machines, one of which is among the largest corrugating medium machines in the world. On January 20, 2005, we announced that we will shut down our number three paper machine at Tomahawk after resuming reliable production on our number one paper machine at Filer City due to lower incremental fiber and transportation costs at Filer City. This plan is based on current market conditions and productivity and could change if market conditions or productivity levels change going forward. Tomahawk’s production capacity on the two paper machines remaining in operation is 507,000 tons. Our Tomahawk mill produces a broad range of basis weights from 23 lb. to 40 lb. and a variety of performance and specialty grades of corrugating medium. Filer City. Our Filer City, Michigan mill is a semi-chemical corrugating medium mill with a production capacity of 363,000 tons. In 2004, we ran two of the three paper machines at Filer City and produced 290,000 tons of corrugating medium. On January 25, 2005 we resumed operation of our number one paper machine at Filer City and now operate all three paper machines at the mill. Filer City produces corrugating medium grades ranging in basis weight from 23 lb. to 40 lb. We operate 66 corrugated manufacturing operations, a technical and development center, five regional graphic design centers, a rotogravure printing operation and a complement of packaging supplies and distribution centers. Of the 66 manufacturing facilities, 40 operate as combining operations, commonly called corrugated plants, that manufacture corrugated sheets and finished corrugated containers. The remaining 26 manufacturing facilities, commonly called sheet plants, purchase combined sheets primarily produced at PCA’s combining operations and manufacture finished corrugated containers. The five graphic design centers are located in Cincinnati, Ohio; Dallas, Texas; Cranbury, New Jersey; Salisbury, North Carolina and South Gate, California. Our corrugated manufacturing operations are spread throughout the United States. Each corrugator plant serves a market radius that typically averages 150 miles. Our sheet plants are generally located in 6 close proximity to our larger corrugator plants, which enables us to offer additional services and converting capabilities such as small volume and quick turnaround items. We produce a wide variety of products ranging from basic corrugated shipping containers to specialized packaging such as wax-coated boxes for the agriculture industry. We also have multi-color printing capabilities to make high-impact graphics boxes and displays that offer customers more attractive packaging. | EXCERPTS ON THIS PAGE:
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