PCA Closing Full-Line Plant in Richmond, Virginia

Why It Matters

The closures reflect PCA’s strategic shift to streamline operations amid volatile packaging demand, while the price increase underscores mounting cost pressures across the containerboard industry.

Key Takeaways

• PCA closes Richmond plant, affecting 110 workers.
• Warehouse in North Chesterfield stays open with six staff.
• Washington shutdown cut 200 jobs, showing broader restructuring.
• PCA upgrades former Greif sites, indicating growth strategy.
• $70‑per‑ton price hike offsets rising input costs.

Pulse Analysis

Packaging Corporation of America (PCA), one of the United States’ largest containerboard producers, announced the shutdown of its full‑line converting plant in Richmond, Virginia, effective June 2026. The decision follows a series of capacity adjustments that began earlier this year with the permanent closure of the No. 2 paper machine and kraft‑pulping lines at the Wallula, Washington mill, which eliminated 200 jobs. Analysts view these moves as a response to lingering demand volatility in the packaging sector, higher raw‑material prices, and the need to streamline operations after a wave of post‑pandemic overcapacity.

The Richmond closure will directly affect 110 hourly production and maintenance workers, most of whom are represented by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union. PCA’s WARN filing promises state‑backed dislocated‑worker assistance and the possibility of transfers to other facilities, while a nearby satellite warehouse in North Chesterfield will retain six employees. Local officials anticipate a short‑term hit to the regional labor market, but the company’s commitment to engage with the union could mitigate longer‑term community impacts.

Despite the plant shutdowns, PCA is signaling a growth trajectory through targeted investments. The firm has been modernizing assets acquired from Greif last year and recently became the first major containerboard maker to announce a $70‑per‑ton price increase, effective March 1, 2026. The price hike aims to offset rising pulp and energy costs while preserving margin expansion. Industry observers expect the combination of selective capacity reductions and price adjustments to position PCA favorably in a market where sustainable packaging demand remains robust, but cost pressures persist.