Greif to close Rock Hill, South Carolina, manufacturing site

In a notice filed last week, Delaware, Ohio-based packaging producer Greif informed the state of South Carolina its plans to close its tube and core manufacturing site in Rock Hill.

The company submitted a Worker Adjustment and Retraining Notice, or WARN letter, to the state July 5, and according to a report from South Carolina Public Radio, Grief Director of Corporate Communications T.J. Struhs says the closure is part of a consolidation of five of the company’s facilities in the Charlotte, North Carolina, area. Rock Hill is located approximately 25 miles south of Charlotte.

The South Carolina WARN Report shows layoffs beginning Sept. 3 and the official permanent closure date as Oct. 30. Struhs tells South Carolina Public Radio that 90 employees will be impacted by the closure but that Greif is trying to find new positions for all affected.

Recycled paperboard tubes and cores are manufactured at the Rock Hill site, which was one of more than 80 facilities Greif acquired when it purchased Caraustar Industries Inc. in 2019 in a deal worth $1.8 billion.

Grief does not mention which of its other sites are part of the consolidation plant in the Charlotte area, but the company has had a “challenging” first half of the year. Despite having the second-best overall first quarter in its history and second-best second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA), Grief reports decreased financial performance in a number of segments, particularly its Paper Packaging & Services (PPS) division.

Low mill volumes impacted Greif’s PPS division in back-to-back quarters. The company reports a $19.4 million decline in gross profit, a $12.5 million decline in operating profit and a $12.5 million decline in adjusted EBITDA in the second quarter.

The company took 77,000 tons worth of economic downtime in the second quarter in the PPS division after taking 94,000 tons worth in the first quarter, and Greif says tubes/cores and sheet demand are down double digits against 2022’s figures.

“Despite operating in an environment of ongoing demand uncertainties, our teams have remained agile and resolutely focused on delivering exceptional value to our shareholders,” Greif President and CEO Ole Rosgaard said during a second-quarter earnings call.