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Sonoco to Shutdown Specialty Paper Machine in Holyoke

April 11, 2008 - Sonoco said that it will permanently shutdown its small No. 3 specialty paper machine at its Holyoke, Mass., paper mill. The target shutdown date is June 27, 2008.

The Holyoke No. 3 machine produces approximately 30 tons per day of specialty paper stocks used in such products as novelty tickets and book covers. The shutdown will impact approximately 20 workers at the plant. The shutdown will not affect Sonoco’s larger Holyoke No. 1 machine which produces high-strength paperboard used primarily to produce the Company’s tubes and cores. Likewise, the shutdown will not impact Sonoco’s tube and core converting plant located in Holyoke.

“Shutting down the No. 3 machine was a difficult decision, especially because of the impact it will have on some of our employees,” said James Harrell, Sonoco’s vice president and general manager, Paper-North America.

“Over the last several years, we have invested in this unit to reduce manufacturing costs and improve quality. However, with markets declining for the kind of specialty paper produced by this small machine, along with rising raw material, energy and other costs, it made it impossible to profitably operate the unit,” Harrell added.

SOURCE: Sonoco




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