HARTSVILLE, S.C., Sept. 18, 2018 (GLOBE NEWSWIRE) -- Due to unprecedented flooding from Hurricane Florence, Sonoco’s paper mill operations in Hartsville, S.C., have been shut down temporarily. Certain operations remain flooded and have experienced damage which could require those operations to be down for several weeks.
“We are gratified that none of our employees have been injured during the storm and subsequent flooding over the past several days,” said Rob Tiede, Sonoco president and CEO. “Flooding along Black Creek at our Hartsville Manufacturing Complex is expected to continue for the next few days, but we are beginning to make assessments and line up maintenance crews so we can quickly begin repairing equipment to get back into operation as soon as possible.”
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.
Founded in 1899, Sonoco (NYSE: SON) is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5 billion, the Company has 21,000 employees working in approximately 300 operations in 33 countries, serving some of the world’s best known brands in some 85 nations. Sonoco is committed to Better Packaging. Better Life., and ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies 2018 list. For more information, visit www.sonoco.com.
Source: Sonoco Products Company