WestRock Co: restructuring charge — WestRock to close Tacoma paper mill by Sep 30; expects $345M in charges

WestRock Co

Permanent closure of Tacoma mill with production ending Sep 30, 2023; 400 employees affected.
Aggregate charges of ~$345M: $247M asset write-downs, $12M severance, $86M other restructuring.
Charges recognized mostly Q4 FY2023; ~two-thirds non-cash; cash portion paid over ~2 years.
Mill produces 510,000 tons/yr of kraft liner and pulp; majority production transitioned to other WestRock mills.
CEO cites high operating costs and need for significant capital investment as reasons.

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 $345 million affecting Tacoma paper mill (approximately 400 people).

Type: restructuring
Charge: approximately $345 million
Affected area: Tacoma paper mill
Headcount: approximately 400 people

Exact text from the filing

On August 1, 2023, WestRock Company (the “Company”) announced its plan to permanently cease operating the Company’s paper mill located in Tacoma, Washington, and to conclude production by September 30, 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 $345 million associated with the Tacoma mill closure, consisting of approximately $247 million in asset write-down or related charges, $12 million in severance and other employee costs, and $86 million in other restructuring costs (e.g., mill shutdown, contract termination and facility carrying costs).

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Source: SEC EDGAR

accession 0001157523-23-001208

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