Caraustar Stops Making Boxboard at Chattanooga Mill
July 22, 2008 - Caraustar Industries today announced that effective July 18, 2008 it permanently ceased production of uncoated recycled boxboard (URB) at its Chattanooga Paperboard mill. The company will continue to operate the recycling center at this location.
Chattanooga Paperboard had an annual capacity of approximately 60 thousand tons.
"The decision to cease production of URB at the Chattanooga mill reflects management's continued focus on maximizing capacity utilization and operating efficiencies in an increasingly challenging economic environment," said Thomas C. Dawson, Jr., vice president, Mill Group.
Approximately 67 salaried and hourly employees are affected by the mill closure.
Associated with the cessation of paperboard production in Chattanooga, the company will record a pre-tax charge of approximately $7.9 million, of which approximately $5.8 million will be non-cash. This rationalization is expected to generate an estimated $9.0 million in annual pre-tax savings, Caraustar said.
SOURCE: Caraustar Industries Inc.