Market: Packaging Paper & Board
Posted September 19, 2018
Due to unprecedented flooding from Hurricane Florence, Sonoco's paper mill operations in Hartsville, South Carolina, have been shut down temporarily. Certain operations remain flooded and have experienced damage which could require those operations to be down for several weeks, as the company says in the press release received by Lesprom Network.
Sonoco operates six uncoated recycled paperboard (URB) machines and one corrugated medium paper machine at its Hartsville mill complex, which collectively represent greater than 20 percent of the Company's global paper production.
Flooding and storm damage from Hurricane Florence also have interrupted operations at three of Sonoco Recycling's locations in North Carolina and the Company's tube and core operation in Hartsville. In addition, several other Company operations in Virginia, North Carolina and South Carolina closed as the storm proceeded through the region, but are now reopened.
In addition to the repair expenses at the Hartsville Manufacturing Complex and other impacted locations, Sonoco expects to incur increased input, operational and supply chain costs related to the event. Sonoco is working to offset the negative impacts by leveraging inventory and production from the rest of its global mill network and supplier relationships.
Sonoco carries property and business interruption insurance, subject to a $1 million self-insured retention, but the extent of the resulting claim and ultimate recovery is currently unknown. The Company expects to provide an estimate of the impact on the business and financial results later this month.
Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.