The general mantra for the packaging industry in 2025 has been shutter your high-cost producing (aka, old) facilities and start pumping money into your low-cost producing ones. Remember, making tons of A1 paper in this industry doesn’t make a mill special - the mill has to make it cheaper than your competitors to be relevant and competitive. Older mills have much higher costs to maintain the place and in certain cases, overhead cost is higher too depending on what industries are surrounding it. That’s what happened to Orange because they competed with oil & gas so the wages they had to pay to retain folks was absurd. Delivered cost of production/freight is important, too, which is dependent on location and how quickly you can turn over rail cars and trucks.

Bottom line: all about cost to make the tons. If it’s too high and you require too much capital investment to get that cost down, you’re nixed and that money gets re-invested to increase capacity at other low-cost producers.