Smurfit Westrock plc announced on February 9, 2026 that it will permanently shut down one of the paper machines at its La Tuque, Quebec mill. The machine, which produced 127,000 tons of solid bleached sulfate (SBS) annually, has been underperforming due to scale and cost pressures. The company also confirmed the closure of the extrusion facility in Pointe‑aux‑Trembles, which converts the SBS grades produced at La Tuque.
The combined shutdown will reduce the company’s SBS production capacity and streamline operations in the region. Approximately 30 employees at La Tuque and 60 employees at Pointe‑aux‑Trembles will be affected. Smurfit Westrock will provide career transition assistance and relocation opportunities where possible, and employees will receive local severance in accordance with company policy and labor union agreements.
Management said the decision reflects ongoing scale and cost challenges that have made the La Tuque machine less competitive. By consolidating capacity, the company aims to strengthen its SBS portfolio and improve long‑term competitiveness, a key component of its post‑merger integration strategy. The closures are part of a broader effort to focus resources on higher‑margin, high‑growth segments.
The announcement comes as Smurfit Westrock prepares to report its Q4 2025 and full‑year results on February 11, 2026. Analysts expect Q4 revenue of $7.67 billion, up 1.7 % YoY, and EPS of $0.46. The company’s Q3 2025 results showed net sales of $8.003 billion and an adjusted EBITDA margin of 16.3 %, slightly below the 16.5 % margin in the prior year. The closures are expected to support margin improvement by eliminating a low‑margin asset.
Laurent Sellier, President and CEO of Smurfit Westrock North America, said, “This was a difficult but necessary decision to align with market realities and strengthen our long‑term position. We remain committed to our people, our operations in Canada, and to delivering reliable, quality service to our customers.” He added that the company will continue to invest in its core SBS business while pursuing opportunities for growth in sustainable packaging.
The market reaction to the announcement was muted, with limited movement as investors awaited the upcoming earnings report. The closures are viewed as a cost‑saving measure that could improve efficiency, but the short‑term impact on employment and capacity is a concern for stakeholders.
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