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PaperWorks to merge Canadian production into Kitchener facility

PaperWorks Industries Inc, which in July bought CanAmPac ULC, said it plans to consolidate all of its Canadian folding carton production into a manufacturing facility in Kitchener, Ontario. The facility was previously a division of CanAmPac, a paperboard and consumer packaging supplier. PaperWorks said it will invest more than $11 million over the next year to expand operations in Kitchener. Based in Philadelphia, Pennsylvania, the company is backed by U.S. private equity firm Sun Capital Partners.

PRESS RELEASE

PaperWorks to consolidate all Canadian folding carton production into its Kitchener, Ontario facility

BALA CYNWYD, Pa., Oct. 22, 2015 /CNW/ — PaperWorks Industries, Inc., a leading integrated North American paperboard packaging supplier, will be consolidating all of its Canadian folding carton production into its recently-acquired manufacturing facility in Kitchener, Ontario, Canada. The company expects to consolidate all production at Kitchener by May 2016, and close its Hamilton, Ontario plant by July 2016.

“Because the Hamilton facility is only 75 kilometers away from the Kitchener manufacturing plant, it made sense from a production and asset utilization perspective to consolidate production under one roof. The Kitchener plant is more modern and has newer equipment, which translates into more efficient output,” said Kevin Kwilinski, president and chief executive officer.

In August, PaperWorks announced a strategic investment of more than $11 million CAD ($9 million USD) over the next year to expand the capabilities of the Kitchener facility. The plant was one of the manufacturing locations acquired from CanAmPac in July. Coated recycled board producer Strathcona Paper, also part of that acquisition, continues to be part of PaperWorks’ long-term strategy and is not affected by any consolidation initiatives.

The 340,000 square foot Kitchener facility is known for its high-quality, offset litho-printed folding carton design and production capabilities. The facility manufactures folding cartons for a variety of products including dry and frozen food, beverage, pharmaceutical, household goods, personal care and institutional foodservice. It services brand owner supply needs in Canada and the northern part of the United States.

One of the reasons PaperWorks has elected to make the announcement nine months in advance of the plant shutdown, is to give Hamilton employees the opportunity to apply for positions at the expanding Kitchener location. The company envisions offering employment opportunities at Kitchener to more than 50% of Hamilton’s 180 workers.

The Hamilton plant has been producing folding cartons for many decades and was part of the Rosmar Packaging Corp. acquisition that PaperWorks made in 2011.

About PaperWorks Industries, Inc.
Founded in 2008, PaperWorks Industries, Inc. (PWI) is a leading, integrated North American full-service packaging provider of recycled paperboard and specialized folding cartons. The company is committed to the highest sustainable forestry and procurement standards. Product certifications include the Forest Stewardship Council, Sustainable Forestry Initiative and the Programme for the Endorsement of Forestry Certification. PWI manufactures approximately 400,000 tons of 100% recycled paperboard annually for a variety of end uses. Its 19 North American locations employ approximately 2000 staff members. For more information: www.paperwrks.com.

Photo courtesy of PaperWorks Industries Inc