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Caraustar Announces Closure of Reading, PA Paperboard Mill

Oct. 12, 2006 - Caraustar Industries today announced the closure of its Reading Paperboard mill in Sinking Spring, Pennsylvania.

The Reading mill produces recycled uncoated paperboard and has an annual capacity of 16,000 tons.

The closure will affect 26 salaried and hourly workers.

Caraustar said it expects to consolidate all of the mill's production into other existing Caraustar locations, which will increase capacity utilization in Caraustar's mill system.

The closure of the Reading mill is in line with Caraustar's previously announced plans to achieve greater cost efficiencies throughout its system and better utilize capacity, the company said.

Associated with this mill closure, Caraustar will record a pre-tax charge of approximately $1.9 million, of which approximately $1.2 million will be non-cash. This rationalization is expected to generate an estimated $1.6 million in annual pre-tax savings.

SOURCE: Caraustar Industries, Inc.




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