Media: Tom Lange, 314-746-1236
Media: Georgina Giannelli, 312-580-4865
Smurfit-Stone Container Corporation Announces Plan to Discontinue Operations at Crown Point Pallet Facility
CHICAGO, March 8, 1999 Smurfit-Stone Container Corporation (Nasdaq: SSCC) today announced its intention to discontinue operations at its Crown Point, IN, corrugated pallet manufacturing plant.
As a result of the merger between Jefferson Smurfit Corporation and Smurfit Stone Container, Smurfit-Stone had been producing corrugated pallets under two distinct trade names. The company will discontinue production of its PAYLOAD® pallet brand and will continue to manufacture corrugated pallets under the Cordeck® brand name.
Smurfit-Stone is a leading manufacturer of corrugated pallets, which provide a safe, smooth deck for stable stacking, do not use nails, never splinter and are recyclable.
The decision to discontinue operations at Crown Point was made after long and careful review of the plant's operations. Numerous factors were taken into consideration in making the decision, including near- and long-term capital requirements, operating margins, cash flow and strategic fit.
A total of 12 hourly and 4 salaried employees will be affected. The plant's final day of production is tentatively scheduled for May 31.
Smurfit-Stone is the industry's leading manufacturer of paper-based packaging, including corrugated containers, folding cartons, industrial bags and other consumer and industrial packaging. It is the largest producer of containerboard, boxboard and kraft paper, and the largest collector, marketer, and exporter of recovered fiber. The company operates more than 300 facilities worldwide. Smurfit-Stone Container Corporation was formed November 18, 1998 as a result of the merger of Jefferson Smurfit Corporation and Stone Container Corporation.
This document contains certain forward-looking statements within the meaning of Section 21 E of the Securities Exchange Act of 1934, as amended, about Smurfit-Stone Container Corporation. Although the company believes that, in making any such statements, its expectations are based on reasonable assumptions, any such statement may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. When used in this document, the words "anticipates," "believes," "expects," "intends," and similar expressions as they relate to Smurfit-Stone Container Corporation or its management are intended to identify such forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties. Important factors that could cause actual results to differ materially from those in forward-looking statements, certain of which are beyond the control of Smurfit-Stone Container Corporation, include: the impact of general economic conditions in the U.S. and Canada and in other countries in which Smurfit-Stone Container Corporation and its subsidiaries currently do business (including Asia, Europe and Latin and South America); industry conditions, including competition and product and raw material prices; fluctuations in exchange rates and currency values; capital expenditure requirements; legislative or regulatory requirements, particularly concerning environmental matters; interest rates; access to capital markets; the timing of and value received in connection with asset divestitures; and obtaining required approvals, if any, of debt holders. The actual results, performance or achievement by Smurfit-Stone Container Corporation could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations and financial condition of Smurfit-Stone Container Corporation.