Containerboard Update: Smurfit Westrock Longview Mill Upcoming Investigation Given Nippon Fallout

Research evidence excerpt

Containerboard Update: Smurfit Westrock Longview Mill Upcoming Investigation Given Nippon Fallout

Truist Securities

Equity Research Report July 6, 2026

INDUSTRIALS: Paper

Containerboard Update: Smurfit Westrock

Longview Mill Upcoming Investigation Michael Roxland

212-326-4839 Given Nippon Fallout Michael.Roxland@truist.com

This morning, the Insurance Journal stated that two new inspections into kraft pulp and

paper mills in Longview, WA have been opened by The Washington State Department

Niccolo Piccini of Labor & Industries as they utilize the same white liquor process as Nippon Dynawave

212-303-4140 (private). Recall that there was an implosion at the Nippon Dynawave mill in late May in Nico.Piccini@truist.com

a tank that contained white liquor, which is primarily composed of sodium hydroxide and

sodium sulfide in water, and used to break the bonds between the lignin and cellulose

4 Page Document to turn wood chips into pulp as part of the paper making process (link).

One investigation involves Smurfit Westrock’s (SW, Buy) Longview mill (~465k tons of

Reasons for this report linerboard and ~240k tons of medium or ~1.5-2.0% of North America containerboard

supply; ~345k tons of kraft paper) while the other is the Port Townsend Paper Company

✓ Sector Update mill (private; produces ~360-370k tons of kraft pulp, kraft paper, containerboard, and

specialty products) in Port Townsend. Investigators are focused on tank maintenance,

inspection, testing and open repair items, EPA or Washington Department of Ecology

reports, injuries sustained or close calls for employees and contractors, and written

procedures for operating and maintaining the tanks. These inspections could take up to

six months. Should these investigations result in less containerboard production from