Latest news with #SmurfitWestrock
Yahoo
03-06-2025
- Business
- Yahoo
Decades-old paper mill in Covington named nation's top climate polluter in new report
The Smurfit Westrock paper mill in Covington. (Photo by Tom Pelton/Environmental Integrity Project) A World War II-era boiler in Virginia is at the center of a growing debate over the paper industry's role in climate change — and how much pollution goes uncounted due to loopholes in federal reporting rules. The Smurfit Westrock paper mill in Covington, a 126-year-old facility located north of Roanoke, released more climate-warming pollution in 2023 than any other paper mill in the country, according to a sweeping new report by the Environmental Integrity Project. The watchdog group found that the facility reported emitting 970,084 metric tons of greenhouse gases last year — but in reality, it released more than 2.5 million tons. The discrepancy stems from an Environmental Protection Agency policy that allows facilities to omit emissions from the burning of wood and wood byproducts, known as 'biogenic' fuels. 'This plant is burning dirty fuels using a boiler built in 1940, and the pollution is hitting communities and the climate alike,' said Jen Duggan, executive director of the Environmental Integrity Project. 'Even in the digital age, we need paper products. But there is no reason a clean sheet of paper needs to be made with dirty fuels and antiquated methods.' The Smurfit Westrock press office did not to respond to an email seeking comment Monday. The report, titled 'A Paper Trail of Pollution,' paints a dire portrait of the U.S. pulp and paper industry. Over a six-month period, researchers reviewed thousands of public records and visited mills across the country, ultimately studying the 185 largest paper and pulp facilities in the United States. Their findings suggest that many of these plants are operating with outdated infrastructure, lax oversight and little accountability for their true environmental impact. Among the most striking revelations is that nearly three-quarters of the mills rely on outdated boilers, with an average age of 41 years. One of the oldest, built in 1928, remains in use at a mill in Longview, Washington. In contrast, experts recommend replacing industrial boilers after about 15 years. At more than 40% of the facilities studied, at least one boiler was a half-century old or older. The Covington mill, which employs several hundred people and is a fixture of the local economy, has long drawn criticism from nearby residents for the foul odors, soot and water pollution it produces. In 2023, it was the nation's top emitter of methane — a greenhouse gas more than 80 times as potent as carbon dioxide over a 20-year period — releasing more than 214,000 metric tons. The mill also ranked third among U.S. paper facilities for hydrochloric acid emissions, releasing an estimated 170,000 pounds. The plant's impact extends beyond the air. State records document at least a dozen incidents over the past five years in which locals reported dark, cloudy, or contaminated discharges — including black liquor, a toxic wood-processing byproduct — flowing into the nearby Jackson River, a tributary of the James River, and ultimately the Chesapeake Bay. One complaint, filed in November 2022, warned of 'polluted water destroying the Upper James River fishery.' The Virginia Department of Environmental Quality dismissed the complaint. Victoria Higgins, Virginia director of the Chesapeake Climate Action Network, said the Covington facility is a clear example of how outdated equipment and regulatory gaps are allowing the paper industry to skirt accountability. 'Pollution from industrial factories burning trees is an under-counted source of climate-warming pollution,' she said. 'In order to deliver on the promise of clean air and a stable climate in Virginia, we need to ensure facilities like the more than century-old Smurfit Westrock mill are moving to cleaner energy sources.' The American paper industry traces its roots to 1690, when the first mill opened in Germantown, Pennsylvania, using discarded cotton rags and waterwheels for power. By 1810, about 185 mills were operating across the country, but a shortage of rags pushed papermakers to experiment with alternative fibers like straw, bark and eventually wood. With the advent of mechanical wood grinders in the 19th century, wood pulp became the industry standard, and the U.S. quickly rose to become the world's top paper producer. That growth came at a cost — mill operations contributed to large-scale deforestation, including the cutting of tens of millions of acres of woodland in a single year by some companies. Today, the U.S. has more trees than it did 50 years ago, thanks in part to replanting efforts by the industry, which now plants over a billion trees annually. The modern paper sector is dominated by a few major corporations and concentrated in states like Wisconsin, Georgia, and Alabama. More than half of paper produced in the U.S. is now used for packaging and wrapping. Federal law currently allows the paper industry to exclude emissions from the combustion of biogenic materials — such as wood, wood chips, and black liquor — on the theory that trees will regrow and eventually recapture the carbon released during combustion. But environmental groups and scientists increasingly question that logic, particularly when emissions from burning these fuels are both large and immediate, while regrowth can take decades. Nationwide, the 185 mills studied reported a total of 33.2 million metric tons of greenhouse gas emissions to the EPA in 2023. But after factoring in emissions from biogenic fuels — which the EPA does not currently require mills to report — the Environmental Integrity Project estimates that the true number is closer to 115 million tons. That's more than three times the reported total. Other pollutants are also under-regulated. In 2020, the mills collectively released more than 46,000 tons of sulfur dioxide, a pollutant linked to heart and lung problems, including premature death. Many mills, including some of the worst offenders, lack basic pollution control devices such as scrubbers that can significantly reduce emissions of sulfur dioxide and hydrogen sulfide. The latter chemical is responsible for the rotten egg-like smell associated with many mills, including the one in Covington, and can trigger nausea, headaches and respiratory issues. Hydrogen sulfide pollution is especially concentrated. In 2023, 90 of the mills reported emitting a combined total of eight million pounds of the chemical, with nearly half of that coming from just 12 plants. Six of the top 10 emitters of hydrogen sulfide across all industries last year were paper mills, the report said. The report also found that regulatory enforcement has been inconsistent and often toothless. A third of the 185 mills studied had an air pollution violation in the last three years. Over the past five years, 95 of them were subject to 267 enforcement actions, which resulted in just $7.4 million in total penalties — a modest sum for an industry with multibillion-dollar revenues. Beyond Virginia, the report includes case studies of plants in Washington and South Carolina, where local residents have filed thousands of odor complaints, voiced worries about health risks, and called on regulators to tighten enforcement. In Port Townsend, Washington, a mill has spent 12 consecutive quarters in violation of the Clean Air Act. In Catawba, South Carolina, residents have logged nearly 50,000 odor complaints since 2018 against a mill now owned by a private equity group led by New England Patriots owner Robert Kraft. Duggan and her colleagues argue that the solution lies in modernization and tougher oversight. The report calls for pulp and paper mills to replace aging boilers with zero-emission industrial heat systems and shift toward cleaner energy sources. It also urges a greater commitment to using recycled paper over virgin wood, which requires more energy and water and generates significantly more emissions. According to the group, manufacturing a ton of cardboard from recycled materials requires half the energy, 32% less water, and produces just a quarter of the climate pollution. The study's authors also demand an end to the biogenic loophole in EPA reporting rules and warn that the issue could worsen if efforts to eliminate or weaken greenhouse gas reporting requirements under President Donald Trump's administration succeed. 'The American paper industry should modernize these plants to use cleaner and more efficient power systems and increase recycling to reduce climate pollution and protect the health of nearby communities,' Duggan said. 'And this industry should not be allowed to hide its climate pollution.' For residents of Covington and other communities living in the shadow of aging mills, the hope is that attention from this report will bring pressure for long-overdue reforms — before the paper trail of pollution grows any longer. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
20-05-2025
- Business
- Yahoo
Smurfit Westrock to Gain From Asset Optimization Amid Cost Woes
Smurfit Westrock Plc SW is gaining from its focus on asset optimization and business improvement initiatives. The company has been undergoing significant transformation since 2023, wherein it has closed underperforming facilities, divested non-core assets and streamlined operations to drive efficiency and cost savings. These efforts are expected to position the company for long-term growth and SW is facing headwinds from merger-related costs, and higher freight and chemicals costs. These are likely to persist and impact its margins in the coming quarters. Labor shortages and supply-chain issues are other woes. Combined Potential to Enhance Growth: Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, is set to deliver the combined potential of Smurfit Kappa and WestRock. Smurfit WestRock has an unmatched geographic reach spanning 42 countries. Given this scale, and equipped with both WestRock's and Smurfit Kappa's highly complementary portfolios and innovative sustainability capabilities, the merged entity is likely to be the global 'Go-To' packaging partner for companies and customers across the company boasts a well-invested asset base with numerous opportunities identified across its operations. In the first quarter of 2025, Smurfit Westrock made investments in containerboard, corrugated and consumer systems across three regions. Smurfit Westrock expanded its Bag-in-Box offering in Spain and the United States, upgrading mill systems in several countries for efficiency, capacity and environmental improvements, and implementing state-of-the-art converting equipment to reduce costs and enhance innovative Westrock is already seeing the initial results of the actions taken. After the first quarter of 2024, SW affirmed its $400-million synergy target for the first year of on Asset Optimization: The company is focused on comprehensive asset optimization and business improvement initiatives. In sync with that, Smurfit Westrock closed underperforming facilities, including 32 packaging facilities, closed three mills and divested four mills since the start of 2023. In the first quarter of 2025, SW closed four mills with a capacity reduction of approximately 600 Westrock also optimized its packaging footprint through significant restructuring actions, including plant closures in Portland, Oregon and Chicago, IL, alongside consultations at two German plants. These moves are expected to drive operational efficiencies, yield cost savings and enhance resource allocation for the company by focusing on core facilities. This is likely to position SW for long-term growth and for Packaging Solutions: Smurfit WestRock will gain from the growing demand for sustainable, fiber-based packaging solutions. Its consumer business remains robust, with growth in beverage, healthcare, and retail and food. SW's overall packaging business is gaining from strong demand, and the implementation of containerboard and boxboard price company also stands to gain from strong growth in e-commerce activities that continue to support demand for packaging solutions. SW is focused on developing sustainable packaging solutions for its customers to help them reduce their environmental footprint. Smurfit Westrock will benefit from solid demand for corrugated packaging, containerboard, food and beverage consumer packaging, and industrial preference for environmentally friendly biodegradable packaging materials is witnessing a steady rise globally, courtesy of customers' increasing awareness of environmental issues. According to Statista, global e-commerce revenues are expected to reach $4.32 trillion in 2025, and witness a compound annual growth rate (CAGR) of 8.02% between 2025 and 2029. In the first quarter of 2025, Smurfit WestRock's cost of sales soared 173.9% year over year. Its selling, general and administrative costs also increased. The company recorded transaction and integration-related costs of $395 million associated with the collaboration in 2024. The merger-related costs are expected to be worrisome for SW in the upcoming quarters and disrupt the free cash flow Westrock continues to face higher freight, wage and chemical costs. This will continue to impact its margins. Meanwhile, labor shortages and supply-chain issues have been disrupting production and impacting shipments to customers. This situation is anticipated to persist and impair SW's ability to meet the high demand. Moreover, the unfavorable impacts of currency translations are expected to hurt its EBITDA performance. Shares of the company have declined 14.8% in the past six months compared with the industry's 8% fall. Image Source: Zacks Investment Research Smurfit Westrock currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, SSR Mining Inc. SSRM and Idaho Strategic Resources IDR. Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy), whereas SSR Mining and Idaho Strategic Resources carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks Technology has an average trailing four-quarter earnings surprise of 11.1%. The Zacks Consensus Estimate for CRS's 2025 earnings is pegged at $7.20 per share, which indicates year-over-year growth of 51.9%. Carpenter Technology shares have skyrocketed 111% in the last Mining has an average trailing four-quarter earnings surprise of 58.8%. The Zacks Consensus Estimate for SSRM's 2025 earnings is pegged at $1.14 per share, implying year-over-year growth of 307%. SSR Mining's stock has soared 88.6% in the last Strategic has an average trailing four-quarter earnings surprise of 21.7%. The Zacks Consensus Estimate for Idaho Strategic's 2025 earnings is pegged at 78 cents per share, indicating year-over-year growth of 16.4%. IDR shares have jumped 24.5% in the last year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carpenter Technology Corporation (CRS) : Free Stock Analysis Report Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report Idaho Strategic Resources, Inc. (IDR) : Free Stock Analysis Report Smurfit Westrock PLC (SW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Mass layoffs from freight-related jobs continue across US, Germany
Mass layoffs continue across freight-related companies in the U.S. and Germany. More than 3,500 job cuts have been announced since April 30, according to media reports and Worker Adjustment and Retraining Notification (WARN) Act notices. Since Jan. 1, more than 30,000 freight-related layoffs have been announced, impacting workers in food production and distribution, manufacturing, transportation, warehousing, and logistics. Among the companies facing layoffs this month, manufacturers and food producers announced the most reductions. Steel maker Cleveland-Cliffs recently announced it will lay off about 950 workers as it idles two Pennsylvania plants, along with a factory in Illinois. The company cited weak demand as one of the main reasons for the decision. Atlanta-based Smurfit Westrock said it is closing four factories and laying off a total of 650 workers. The packaging manufacturer is closing plants in Texas and Minnesota, as well as two in Germany. Georgia-Pacific Corp. is permanently closing its plywood mill in Emporia, Virginia, and laying off 554 employees. The shutdown is due to a decline in plywood demand caused by a slower housing market, company officials said in a news release. Other manufacturers announcing plant closures include Elkay Plumbing Products Co. in Savanna, Illinois, affecting 135 workers; and plastics maker Berry Global Inc., which is closing a plant in Lannett, Alabama, and laying off 112 people. Food production and distribution firm Weinstein Industries LLC and its sister company Midwest Perishable Industries are closing two meat processing centers, as well as its transportation and warehousing arm, PDS Industries LLC. The closures will result in 115 layoffs. Amsted Rail Co. Inc., which makes railcar components, said it is laying off 74 workers from a factory in Granite, Illinois. The company cited a 'business slowdown' in a state filing as its reason for the workforce reduction. Rite Aid said it is closing distribution centers in Aberdeen, Maryland, and Des Moines, Washington, resulting in 494 layoffs. On May 5, Rite Aid announced it was filing for Chapter 11 bankruptcy and plans to either sell or close its 1,240 stores and facilities across 15 states. Berger Logistics said it is closing its supply chain operations in Phoenix and laying off 121 workers by June 4. The transportation, forwarding and logistics services firm, which is based in Austria, did not provide a reason for the facilities closure. Logistics and warehouse provider Cardinal Logistics Management Corp. said it is laying off 43 warehouse workers by June 13 from a facility in Naperville, Illinois, after losing a contract. Northern Air Cargo LLC said it is closing its operations in Miami and laying off 30 workers by July 13. Additionally, up to 40 pilots who are based out of Miami International Airport but do not reside in Florida will be furloughed, Northern Air Cargo officials said in a WARN notice filing. The company did not provide a reason for the facility's closure or furloughs. The post Mass layoffs from freight-related jobs continue across US, Germany appeared first on FreightWaves.
Yahoo
02-05-2025
- Business
- Yahoo
Smurfit Westrock shutdowns to affect 650 employees at 4 facilities
This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. Smurfit Westrock announced a series of upcoming production line and facility closures late Wednesday, ahead of its first-quarter 2025 earnings release. The company will close its coated recycled board mill in St. Paul, Minnesota, and stop production at its containerboard mill in Forney, Texas. The specialty coating facility at Forney will not be affected. Smurfit Westrock also initiated talks with local work councils in Germany about closing two converting facilities there. A WARN notice dated April 30 in Minnesota states that layoffs there will happen on or shortly after June 30. The company estimates the U.S. closures will reduce its containerboard and CRB production capacity by more than 500,000 tons. Together, the U.S. and Germany closures are expected to affect approximately 650 employees. The company says it will provide employees with severance and support such as career transition assistance and relocation opportunities, where possible. 'While closing facilities is never an easy decision, it is based on a realistic expectation of current and future capacity needs, operating costs and an unrelenting focus on improving our business,' CEO Tony Smurfit said in a statement. 'We are very grateful for the significant contributions made by the teams at these locations over the years and we will do all we can to support them throughout this process.' The company expects it will incur $99 million in pre-tax charges from these closures, according to a Wednesday securities filing. That breaks down to approximately $42 million for severance payments to former employees and $57 million for other restructuring costs. Most of the charges, $226 million worth, are expected to be realized in the second quarter, while the remaining $61 million is expected to be recognized during the rest of this year and into 2026. Since Smurfit Kappa completed its acquisition of WestRock in July 2024, company executives have repeatedly discussed streamlining efforts to evaluate legacy business units and assets for footprint optimization. The company has announced numerous facility closures in recent months, including a corrugated products plant in Portland, Oregon, where a phased shutdown will begin in June. Earlier this year, Smurfit Westrock also announced it would close a container plant in Bridgeview, Illinois, with layoffs slated for March. In October 2024, Tony Smurfit said on an earnings call that Smurfit Westrock had recently eliminated 800 positions amid other cost-cutting measures, and in February he gave an update that streamlining had resulted in more than 1,000 people already departing the company or doing so soon. Editor's note: This story has been updated with additional information from a Minnesota WARN notice. Recommended Reading Smurfit Westrock to close corrugated plant in Oregon Sign in to access your portfolio
RTÉ News
01-05-2025
- Business
- RTÉ News
Smurfit Westrock's US orders steadying after rocky six weeks
US order books at the world's largest cardboard box maker Smurfit Westrock are steadying after "a lot of weakness" in March and early April amid falling consumer confidence, the company's chief executive Tony Smurfit said today. Smurfit said the Ireland-headquartered company was "seeing a lot of nervousness" among its customers that span the household goods, food and pharmaceutical sectors in relation to tariffs but that it had not yet translated into "any material issue". He made the comments after the packaging giant reported first quarter core profit of $1.25 billion, in line with its guidance, and forecast a 6% to 11% rise in full year earnings to between $5 billion and $5.2 billion. "We did see a lot of weakness in March and the first two weeks of April. It seems to be steadying itself, our order books are getting better in the second half of April than they were in the six weeks prior to that. That gives us some encouragement," Tony Smurfit told an analyst call when asked about the US market. Smurfit Westrock expected some recovery in the second half of the year but not the kind of bounceback some competitors were talking about that would require a level of consumer confidence that is not currently seen in surveys, he added. Smurfit said the European market was a bit better and that while demand may not be strong, it is "reasonable" and on an improving trend. While it largely sells to customers within each of the 40 countries in which it operates, Smurfit said it has adjusted its US/Canada supply chains in response to tariffs to cut out the previous large amount of cross border trade. Smurfit Westrock was formed when Smurfit Kappa, the largest paper packaging producer in Europe, completed its $11 billion acquisition of US rival WestRock last July. Tony Smurfit said today's results were driven by good results across all three segments, with notable progress in North America, and is significantly ahead of the combined result for the previous year. "I am especially pleased with how well the combination has come together, with strong operational and cultural integration taking place across all three regions," he said. "Coupled with our geographic footprint and our unrivalled portfolio of innovative and sustainable packaging solutions, we have a customer-focused and performance-driven team that is delivering for all stakeholders," he said. Mr Smurfit said the company's synergy programme is on track to deliver $400m, with about $350m in the current year. "We believe there is substantial opportunity to continue to structurally improve the business through a sharper commercial and operational focus, at least equal to our synergy target," he said. He also sai the company continues to actively optimise its asset base and recently announced the closure of over 500,000 tons of paper capacity in North America. "We are also closing two converting facilities in our North American region and have initiated consultations to close two of our converting facilities in EMEA & APAC," he stated. Smurfit WestRock shares had fallen by 6.7% this quarter and lost 22% so far this year.
