HARTSVILLE, S.C.--(BUSINESS WIRE)--Mar. 17, 2009--
Sonoco (NYSE: SON), one of the largest diversified global packaging
companies, announced today that it will permanently close its Lancaster,
Ohio, uncoated recycled paperboard mill, effective May 16, 2009,
according to James Harrell, division vice president and general manager,
Paper North America.
The mill, located at 831 S. Memorial Drive, has the capacity to annually
produce approximately 56,000 tons of paperboard which has been used
primarily to supply the Company’s industrial products converting
operations. The plant closure will impact 58 employees. The Company will
offer severance pay, benefits continuation and outplacement assistance
to employees.
“The decision to permanently close the Lancaster mill was extremely
difficult because of the effect it has on our employees,” said Harrell.
“The economic recession has continued to weaken demand for uncoated
recycled paperboard in North America which is forcing us to take
additional steps to align our production capacity to match changing
market realities.”
Following the closure, Sonoco will operate 21 uncoated recycled
paperboard mills and 31 paper machines globally including 11 mills and
19 machines operated in the United States and Canada. Capacity from the
Company’s remaining mill system will be used to meet its customers’
supply needs. Since mid-2008, Sonoco has eliminated approximately
150,000 tons of annual uncoated recycled paperboard production capacity
by shutting mills in Rockton, Ill., Montreal, Quebec, Canada, and a
small specialty machine in Holyoke, Mass.
About Sonoco
Sonoco, founded in 1899, is a global manufacturer of industrial and
consumer products and provider of packaging services, with more than 300
operations in 35 countries serving customers in 85 nations. Additional
information about Sonoco is available at http://www.sonoco.com.
Source: Sonoco
Sonoco
Roger Schrum, 843-339-6018
roger.schrum@sonoco.com