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1998 Annual Report

SMURFIT-STONE AT A GLANCE

COMPANY OVERVIEW

SIZE AND SCOPE
The merger of Jefferson Smurfit Corporation and Stone Container Corporation has created the leading paper and paper-based packaging company in North America. The new company's strategy emphasizes innovation, service, margins, and market position. The company has a national network of more than 300 packaging plants that enables it to provide paper-based packaging solutions for any customer, large or small, anywhere in the country.

CREATIVITY AND INNOVATION
Smurfit-Stone is a pioneer in the development of several concepts. Among them are using "just enough" packaging material to produce a total-performance packaging system. This system creates multiple packaging products that work together to address all customer packaging needs. The company also furnishes teams of technical and design specialists to devise packaging solutions to customers' problems. Smurfit-Stone's R&D, creative, and technical capabilities apply new thinking and technology from around the world to its own products and processes.

SERVICE CAPABILITIES
In an industry where retailers are dominating the shape of packaging, Smurfit-Stone has the graphic, structural packaging, and converting capabilities to address this increasingly competitive market. By working collaboratively, not only with the company's direct customers but also with their customers, experts in various disciplines have dramatically reduced the cycle time from concept to completion of packaging solutions, as well as increasing value to customers.

NORTH AMERICAN LEADERSHIP
Smurfit-Stone is the leading North American producer of corrugated containers, containerboard, folding cartons, and industrial bags. It also has the largest recycling business in the industry. Together with its international operations and those of its affiliate, Jefferson Smurfit Group, the company can provide global capabilities to its customers. Smurfit-Stone and Jefferson Smurfit Group supply about 11 percent of the world containerboard market.

PRODUCTS

CORRUGATED CONTAINERS AND CONTAINERBOARD

    DESCRIPTION

    Corrugated containers represent Smurfit-Stone's largest business segment, with 61 percent of the company's sales. The division supplies hundreds of national and international manufacturers, as well as thousands of local and regional customers. Smurfit-Stone is the leading supplier of containerboard to domestic and export markets.

    CAPABILITIES

    • Full range of high-quality corrugated containers
    • Innovative packaging solutions and high-quality graphics
    • Complete line of retail-ready, point-of-purchase displays
    • Full line of specialty products and custom, die-cut boxes to display packaged merchandise
    • Graphic capabilities include flexo, preprint, post-print, labels, and substrates
    • Cordeck® corrugated pallets
    • Full range of domestic and export-specific liners, including mottled white and high-performance grades. Full range of semi-chemical and recycled medium, including high-performance grades

FOLDING CARTONS AND BOXBOARD MILLS

    DESCRIPTION

    Smurfit-Stone offers a wide range of styles appropriate to nearly all carton end uses. These cartons are used by consumer-goods producers to package foods, beverages, fast food, soap, paper, pharmaceuticals and cosmetics. Printing capabilities include sheet and web, lithographic, rotogravure, and flexographic.

    CAPABILITIES

    • Full line of folding cartons and claycoated and uncoated recycled boxboard in newsback, kraftback, and whiteback grades
    • Extensive converting capabilities and support services in structural and graphic design, mechanical packaging, engineering services, electronic data interchange, research and development
    • High-quality, preprinted E-flute and F-flute corrugated packaging in a full range of grades in calipers, from .014 to .040

SPECIALTY PACKAGING

    DESCRIPTION

    The specialty packaging business comprises industrial and consumer packaging. Industrial produces tubes and cores, partitions, and a number of specialized products. Consumer meets the product needs of a wide variety of marketing, manufacturing, and consumer companies.

    CAPABILITIES

    • Paper tubes and cores
    • Labels for decorative packaging applications
    • Solid fiber and paperboard partitions
    • Flexible-packaging operations with specialized lamination
    • Specialized products, including furniture forms, construction forms, industrial storage tubes, and electrostatic disapative board (PROTECH®)

BAG PACKAGING AND KRAFT PAPER

    DESCRIPTION

    Multiwall, consumer, specialty, and flexible bags are used to ship, store, protect, and promote a wide range of products. Smurfit-Stone offers a coordinated approach to analyzing customer needs and providing both the bag packaging and packaging equipment system that best suits the product, production, and protection requirements of its customers. Smurfit-Stone is the leading supplier of kraft paper to domestic and export markets.

    CAPABILITIES

    • Multiwall, industrial, consumer, specialty, and flexible bags
    • Full line of flexible, intermediate bulk containers
    • Custom-designed bag packaging
    • Packaging equipment and systems that fill, seal, convey, and palletize bag products
    • Technical, graphics, and marketing expertise
    • Full range of kraft paper grades include grocery bag and multiwall sack kraft

RESOURCES

RECYCLED FIBER

    DESCRIPTION

    Smurfit-Stone is unique in the paper and packaging industry in that it has a strong position in both virgin and recycled fiber. The company has built the largest reclamation business in the industry and now collects and processes approximately 7 million tons of recycled paper every year.

    CAPABILITIES

    • Recycling business handles recovered paper generated by industrial, commercial, and residential sources.
    • Collected material includes old corrugated containers, newspapers, magazines, aluminum cans, glass, and plastics.
    • Waste Reduction Services provides waste-management solutions to businesses.

PAPERBOARD, PAPER, AND PULP MILLS

    DESCRIPTION

    The containerboard mill segment produces a full line of commodity and specialty paperboards for conversion into corrugated containers, bags, and related packaging products. The company produces unbleached kraft linerboard grades and corrugating medium. This group also supplies bleached hardwood market pulp for printing and writing papers, bleached paperboard, and photographic paper.

    CAPABILITIES

    • Wide range of unbleached kraft linerboard grades
    • Medium, available in semi-chemical and recycled grades
    • MIST-WITE® II with superior graphics capability and printability
    • Solid bleached sulfate (SBS)
    • Bleached hardwood pulp

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