US-based packaging company Atlantic Packaging will acquire the three largest paperboard converting facilities of International Paper (IP) for an undisclosed amount.
Acquisition of the facilities in Greensboro, Hazelton and Sturgis is expected to make Atlantic the largest convertor of bleached paperboard in North America.
Currently, Atlantic employs about 900 people across its 12 branches located in Southeast US, Dominican Republic and Central America, which is expected to go up to 1000 in the next 24 months as the company plans to expand its operations further with a new facility in Dallas.
Atlantic president Rusty Carter said that the company did not have any plans or strategies of closing or consolidating any of its facilities but to further expand the facilities they have acquired from IP.
Speaking about the expansion, Carter further said that the space was needed to accommodate the master paper rolls and the converting process at the facilities in Greensboro (350,000 ft2), Sturgis (275,000 ft2) and Hazelton (175,000 ft2). The company plans to expand the facility further by 15000 ft2.
Star News Online quoted Carter as saying, "The acquisition adds about 1 million square feet to our national footprint. IP chose to get out of the finishing business, but it's our core competency."
The three facilities are used primarily to convert bleached paperboard produced at IP mills in Riegelwood, Augusta, and Texas. The sheeting plants are used as finishing departments and distribution centers.