Smurfit Westrock Shuts Down 127,000-Ton Paper Machine in Quebec

Event summary

  • Smurfit Westrock will permanently close one paper machine at its La Tuque mill, eliminating 127,000 tons of annual SBS production capacity.
  • The company will also shut down an extrusion facility in Pointe-aux-Trembles, Quebec, affecting ~90 employees.
  • Closures aim to address scale and cost challenges in the SBS portfolio.
  • Laurent Sellier, CEO of Smurfit Westrock North America, called it a 'difficult but necessary' decision.

The big picture

The move reflects broader industry consolidation in paperboard manufacturing, where scale and cost pressures are forcing operators to rationalize underperforming assets. Smurfit Westrock's decision aligns with peers' efforts to streamline operations amid volatile demand and input cost fluctuations. The closures suggest the company is prioritizing long-term competitiveness over short-term capacity.

What we're watching

Capacity Adjustment
How Smurfit Westrock will reallocate the lost 127,000 tons of SBS production across its network.
Cost Efficiency
Whether the closures will materially improve the company's margins in the North American SBS market.
Workforce Transition
The pace at which affected employees are redeployed or transitioned out.

Related topics

Packaging