* Sees annual savings of $16 mln
* Shares rise 2 pct
Feb 29 (Reuters) - Packaging and paper company RockTenn Co said it will close its containerboard mill at Matane, Quebec to cut costs.
RockTenn ceased production at the mill in late January.
“The Matane mill was the highest-cost mill in the RockTenn containerboard mill system after accounting for all costs,” the company said in a statement.
RockTenn expects annual savings of about $16 million from the closure.
The company plans to take about $29 million in pretax charges, $23 million in the current quarter.
The mill, which RockTenn acquired in May 2011 as part of the Smurfit Stone takeover, had 176,000 tons per year of recycled corrugated medium production capacity, the company said.
The Norcross, Georgia-based company’s shares, which have gained 62 percent in value since touching a year-low in October, were up 2 percent at $70.69 in morning trade on the New York Stock Exchange.