The primary raw materials that our mill operations use are recycled fiber at our
recycled paperboard and containerboard mills and virgin fibers from hardwoods
and softwoods at our virgin containerboard and paperboard mills. Certain of our
virgin containerboard is manufactured with some recycled fiber content. Recycled
fiber prices and virgin fiber prices can fluctuate significantly. While virgin
fiber prices have generally been more stable than recycled fiber prices, they
also fluctuate, particularly driven by changes in weather, such as during prolonged
periods of heavy rain or drought, or during housing construction slowdowns or
accelerations.
Recycled and virgin paperboard and containerboard are the primary raw materials
used by our converting operations. Our converting operations use many different
grades of paperboard and containerboard. We supply substantially all of our converting
operations needs for recycled and virgin paperboard and containerboard from our
own mills and through the use of trade swaps with other manufacturers, which allow
us to optimize our mill system and reduce freight costs. Because there are other
suppliers that produce the necessary grades of recycled and bleached paperboard
and containerboard used in our converting operations, we believe we would be able
to source significant replacement quantities from other suppliers in the event
we incur production disruptions for recycled or virgin paperboard or containerboard.
Westrock's Comment on Supply Chain
The primary raw materials that our mill operations use are recycled fiber at our
recycled paperboard and containerboard mills and virgin fibers from hardwoods
and softwoods at our virgin containerboard and paperboard mills. Certain of our
virgin containerboard is manufactured with some recycled fiber content. Recycled
fiber prices and virgin fiber prices can fluctuate significantly. While virgin
fiber prices have generally been more stable than recycled fiber prices, they
also fluctuate, particularly driven by changes in weather, such as during prolonged
periods of heavy rain or drought, or during housing construction slowdowns or
accelerations.
Recycled and virgin paperboard and containerboard are the primary raw materials
used by our converting operations. Our converting operations use many different
grades of paperboard and containerboard. We supply substantially all of our converting
operations needs for recycled and virgin paperboard and containerboard from our
own mills and through the use of trade swaps with other manufacturers, which allow
us to optimize our mill system and reduce freight costs. Because there are other
suppliers that produce the necessary grades of recycled and bleached paperboard
and containerboard used in our converting operations, we believe we would be able
to source significant replacement quantities from other suppliers in the event
we incur production disruptions for recycled or virgin paperboard or containerboard.
Sources:
Westrock Company's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
Updated on:
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