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maurice norbert | stock.adobe.com
In “strategic actions” meant to maximize the profitability of its mill network, Delaware, Ohio-based packaging company Greif has revealed plans to permanently cease production on a paperboard machine in Georgia as well as permanently close a containerboard mill in Massachusetts.
“Decisions like these are extremely difficult because of the impact it has on our colleagues and their families, as well as the larger community,” Greif President and CEO Ole Rosgaard says in a news release.
By the end of March, the company plans to cease production on its No. 1 paperboard machine (A1) at its uncoated recycled paperboard (URB) and specialty converting site in Austell, Georgia.
Ceasing production on the A1 machine, a nonintegrated asset for Greif, is a result of increased costs and declining demand in its major furniture, books and binders end markets, according to the company.
Meanwhile, by the end of May, Greif will permanently close its containerboard and URB mill in Fitchburg, Massachusetts. The company says a combination of high operating costs and need for “significant capital investment” were the determining factors in the decision to shut the mill.
“We are grateful to our colleagues in Austell and Fitchburg for their contributions to the company and are committed to helping them navigate next steps by providing severance benefits and outplacement assistance,” Rosgaard says.
Approximately 140 total jobs will be affected by the closures, and the moves will reduce Greif’s containerboard capacity by 100,000 tons and URB capacity by 90,000 tons.
“We believe strongly in the fundamentals of our business,” Rosgaard says. “These strategic actions will refine our participation in the market and help us maximize the profitability of our mill network and our overall business portfolio.”
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