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Smurfit Westrock announces capacity reductions and facility closures

1. Smurfit Westrock will permanently close mills, reducing capacity by over 500,000 tons. 2. Consultations with local councils have begun regarding the closures.

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$42.0204/30 05:04 PM EDTEvent Start
$40.4705/01 11:27 PM EDTLatest Updated
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FAQ

Why Bearish?

The closure of mills reduces production capacity significantly. Historically, significant capacity reductions can lead to negative price reactions among investors due to lower future revenue expectations.

How important is it?

The announcement indicates significant operational changes that may affect SW's market position and financial health. Investors typically react quickly to news of capacity reductions, especially in manufacturing sectors.

Why Short Term?

The immediate impact from mill closures will likely be felt right away. Similar closures in the past have caused swift market reactions as investors reassess growth forecasts.

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DUBLIN--(BUSINESS WIRE)--Smurfit Westrock plc (NYSE: SW, LSE: SWR) today announced it will permanently close its coated recycled board (CRB) mill in St. Paul, Minnesota, U.S. and will discontinue production at its containerboard mill in Forney, Texas, U.S. The specialty coating facility at Forney will not be impacted. As a result, the Company's containerboard and CRB capacity is expected to reduce by over 500,000 tons. Smurfit Westrock has also initiated consultations with local works councils.

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