July 29, 2021 - Pactiv Evergreen on July 28 announced that it has made the difficult decision to exit the coated groundwood paper business. As a result, the company will permanently cease production of coated groundwood paper at its Pine Bluff, Arkansas, location.
Pactiv Evergreen said it will continue to strategically invest in the Pine Bluff mill, which will remain an essential facility in the Pactiv Evergreen operations network, serving the fiber-based beverage packaging market.
"With the decline in the coated groundwood market, our decision to exit this business enables us to re-invest resources into our strategic core competency of liquid packaging board as well as other more profitable segments across the enterprise," said Mike King, CEO. "Pactiv Evergreen will continue to employ more than 650 employees at the Pine Bluff mill, where liquid packaging board and extrusion manufacturing will remain."
Pactiv Evergreen noted that it will work directly with its coated groundwood customers to meet their product needs and support their transition to new suppliers until production ends in Q4. The company expects to complete the closure by October 31, 2021, with shipments continuing until inventory is depleted.
Pactiv Evergreen noted that it will work closely with impacted employees and union leadership during this transition.
In a press release, Pactiv Evergreen said, "We are committed to helping support our team members during this difficult time. This decision is not reflective of the hard work and dedication of our team members nor the performance of the mill, but the reality of the coated publications business outlook. The Company thanks its hard-working team members for their many contributions. We also thank our long-term customers for their loyalty and understanding of this decision and are committed to working with them during this transition."
Pactiv Evergreen (NASDAQ: PTVE) is one of the largest manufacturers of fresh food and beverage packaging in North America. With a team of nearly 15,000 employees, the Company produces a broad range of on-trend and feature-rich products that protect, package and display food and beverages for today's consumers. To learn more, visit: pactivevergreen.com.
SOURCE: Pactiv Evergreen Inc.
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