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Sonoco to Close Orrville, OH Packaging Plant in March 2010

Sept. 11, 2009 - Sonoco said that it close its Orrville, Ohio, rigid paper packaging plant by March 2010.

The Orrville operation, located at 425 Collins Blvd., currently employs 84 employees and manufactures fiber cartridges for adhesives and sealants.

The first phase of the plantís shutdown is expected to begin in late November and result in the reduction of approximately half the workforce, Sonoco said.

The plant will remain in partial operation until it is closed in March 2010.

Howard Coker, Sonoco's vice president, Rigid Paper and Closures, said the company has been facing significant reductions in customer orders over the past year as a result of the nationwide recession's impact on the housing market. Coker said that Sonoco will consolidate customer orders in the company's other rigid paper packaging operations in the Ohio area.

"Closing a plant is always difficult because of the impact on employees and the community," Coker said. "But the dramatic downturn in home construction is impacting the use of adhesives and sealants which have reduced orders by our customers by about 25 percent. We have implemented some capacity reductions, but we simply cannot continue to operate the Orrville plant at such reduced levels."

Sonoco said it will provide severance and outplacement assistance to employees.

Sonoco acquired the plant in 2007 when it acquired the fiber containers and industrial plastic carriers assets of Caraustar Industries.

SOURCE: Sonoco




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