US-based containerboard and corrugated packaging manufacturer KapStone Paper and Packaging (KapStone) plans to build a new sheet plant in Ontario, California, US.
The company also plans to invest as a minority partner in a sheet feeder in Ontario.
A total of approximately $25m will be invested for these facilities, which will be funded by the end of this fiscal year.
Expected to begin operations by next January, the new sheet plant will manufacture boxes that will be mainly provided to the firm’s Victory Packaging business in southern California.
The boxes produced at the new facility will be supplied to the other customers of the company.
With the investment, KapStone aims to increase its vertical integration by more thab 60,000t a year.
KapStone Paper and Packaging chairman and CEO Roger Stone said: "These investments are consistent with our strategy to increase the vertical integration of KapStone's mills, reducing exposure to non-integrated end markets, and are in addition to the 20,000 to 25,000t per year vertical integration from the Central Florida Box acquisition.
“The Ontario, California, sheet plant will further extend our geographic reach to better service KapStone's customers while internalising the production of some of our Victory Packaging corrugated box demand."
With nearly 6,300 employees, the company currently operates four paper mills, 22 fully owned corrugated converting facilities and 65 distribution centres.
In July, the company completed the acquisition of Central Florida Box (CFB), expanding its presence in the US south-east market.