REG-Smurfit Westrock plc Smurfit Westrock announces capacity reductions and facility closures

Smurfit WestRockAnnouncement

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Smurfit Westrock announces capacity reductions and facility closures

 

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 in
Germany with a view to permanently closing two converting facilities there.

Approximately 650 employees in the U.S. and Germany will be impacted as a
result of these closures. We recognize the impact this has on our employees
and the communities involved. We will provide support to employees during this
transition including career transition assistance and relocation opportunities
where possible. The impacted employees will receive local severance in
accordance with Company policy, as well as works council and labor union
agreements.

“While closing facilities is never an easy decision, it is based on a
realistic expectation of current and future capacity needs, operating costs
and an unrelenting focus on improving our business,” said Tony Smurfit,
President & Group Chief Executive Officer, Smurfit Westrock. “We are
very grateful for the significant contributions made by the teams at these
locations over the years and we will do all we can to support them throughout
this process.”

Forward Looking Statements

This press release includes certain “forward-looking statements”
(including within the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) regarding, among other
things, our closures and associated headcount reduction as well as anticipated
expense reductions, charges and cost savings. Statements that are not
historical facts, including statements about the beliefs and expectations of
the management of the Company, are forward-looking statements. Words such as
“may”, “will”, “could”, “should”, “would”,
“anticipate”, “intend”, “estimate”, “project”, “plan”,
“believe”, “expect”, “target”, “prospects”, “potential”,
“commit”, “forecasts”, “aims”, “considered”, “likely”,
“estimate” and variations of these words and similar future or conditional
expressions are intended to identify forward-looking statements but are not
the exclusive means of identifying such statements. While the Company believes
these expectations, assumptions, estimates and projections are reasonable,
such forward-looking statements are only predictions and involve known and
unknown risks and uncertainties, many of which are beyond the control of the
Company. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend upon future circumstances
that may or may not occur. Actual results may differ materially from the
current expectations of the Company depending upon a number of factors
affecting its business, including risks associated with the integration and
performance of the Company. Important factors that could cause actual results
to differ materially from such plans, estimates or expectations include: our
ability to deliver on our closure plans and associated efforts; our future
cash payments associated with these initiatives; potential future cost savings
associated with the closure initiatives; the amount of charges and the timing
of such charges or actions described herein; potential future impairment
charges; accuracy of assumptions associated with the charges; economic,
competitive and market conditions generally, including macroeconomic
uncertainty, customer inventory rebalancing, the impact of inflation and
tariffs and increases in energy, raw materials, shipping, labor and capital
equipment costs; the impact of public health crises; reduced supply of raw
materials, energy and transportation, including from supply chain disruptions
and labor shortages; developments related to pricing cycles and volumes;
intense competition; geopolitical uncertainty, and conditions that may result
from legislative, regulatory, trade and policy changes associated with the
current or subsequent Irish, US or UK administrations; geo-economic
fragmentation and protectionism such as tariffs, trade wars or similar
governmental actions affecting the flows of goods, services or currency; legal
proceedings instituted against the Company; actions by third parties,
including government agencies; the Company’s ability to promptly and
effectively integrate Smurfit Kappa’s and WestRock’s businesses (the
“Combination”); the Company’s ability to achieve the synergies and value
creation contemplated by the Combination; the Company's ability to meet
expectations regarding the accounting and tax treatments of the Combination,
including the risk that the Internal Revenue Service may assert that the
Company should be treated as a US corporation or be subject to certain
unfavorable US federal income tax rules under Section 7874 of the Internal
Revenue Code of 1986, as amended, as a result of the Combination; other
factors such as future market conditions, currency fluctuations, the behavior
of other market participants, the actions of regulators and other factors such
as changes in the political, social and regulatory framework in which the
Company operates or in economic or technological trends or conditions, and
other risk factors included in the Company's filings with the Securities and
Exchange Commission. Neither the Company nor any of its associates or
directors, officers or advisers provides any representation, assurance or
guarantee that the occurrence of the events expressed or implied in any such
forward-looking statements will actually occur. You are cautioned not to place
undue reliance on these forward-looking statements. Other than in accordance
with its legal or regulatory obligations (including under the UK Listing
Rules, the Disclosure Guidance and Transparency Rules, the UK Market Abuse
Regulation and other applicable regulations), the Company is under no
obligation, and the Company expressly disclaims any intention or obligation,
to update or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.

About Smurfit Westrock

Smurfit Westrock is a leading provider of paper-based packaging solutions in
the world, with approximately 100,000 employees across 40 countries.

www.smurfitwestrock.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.smurfitwestrock.com&esheet=54246993&newsitemid=20250430112853&lan=en-US&anchor=www.smurfitwestrock.com&index=1&md5=fff5471b4a54d281ba2903a2f5b68d12)

Sinead Gill

sinead.gill@smurfitwestrock.com 
(mailto:sinead.gill@smurfitwestrock.com) 
00353 87 117 3389



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