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Sonoco to Close Lancaster, OH Paperboard Mill

March 18, 2009 - Sonoco late-yesterday said that it will permanently close its Lancaster, Ohio, uncoated recycled paperboard mill on May 16, 2009.

The plant closure will impact 58 employees.

Sonoco said it will offer severance pay, benefits continuation and outplacement assistance to employees.

The mill, located at 831 S. Memorial Drive, has the capacity to produce approximately 56,000 tons per year of paperboard which has been used primarily to supply the company’s industrial products converting operations.

“The decision to permanently close the Lancaster mill was extremely difficult because of the effect it has on our employees,” said James Harrell, division vice president and general manager, Paper North America.

“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,” Harrell added.

Since mid-2008, Sonoco has removed 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.

SOURCE: Sonoco




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