WestRock Co: restructuring charge — WestRock to close North Charleston paper mill by Aug 31; expects $515M in charges

WestRock Co

Permanent closure of North Charleston, SC paper mill on Aug 31, 2023; 500 employees affected.
Total charges ~$515M: $396M asset write-downs, $28M severance, $91M other restructuring costs.
Majority of charges recognized in Q2 fiscal 2023; two-thirds non-cash, remainder cash over years.
Mill capacity 550,000 tons/year (containerboard, kraft paper); WestRock to exit saturating kraft business.
Closure driven by high operating costs and need for significant capital investment.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

WestRock Co announced a restructuring with charges of approximately $515 million affecting the Company’s paper mill located in North Charleston, South Carolina (approximately 500 people).

Type: restructuring
Charge: approximately $515 million
Affected area: the Company’s paper mill located in North Charleston, South Carolina
Headcount: approximately 500 people

Exact text from the filing

On May 2, 2023, WestRock Company (the “Company”) announced its plan to permanently cease operating the Company’s paper mill located in North Charleston, South Carolina on August 31, 2023, as part of its ongoing efforts to improve return on invested capital and maximize the performance of its assets. The Company expects to incur aggregate charges of approximately $515 million associated with the North Charleston mill closure, consisting of $396 million in asset write-down or related charges, $28 million in severance and other employee costs, and $91 million in other restructuring costs (e.g., mill shutdown, contract termination and facility carrying costs).

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Source: SEC EDGAR

accession 0001157523-23-000686

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