Paper packaging facility closures in February

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Packaging manufacturers continue to tighten their manufacturing footprints as a result of changes to demand, restructuring plans and M&A deals. These were some of the announcements and disclosures that companies made in February:

Cascades announced in February it’s closing three containerboard facilities in Canada and the U.S. — two in Ontario and one in Connecticut — as part of an optimization plan, affecting 310 employees.
Domtar, part of the Paper Excellence Group, is indefinitely curtailing paper production at its mill in Ashdown, Arkansas, due to decreased customer demand, Paper Age reported, citing a Feb. 21 announcement from Domtar. Specifically, the mill’s A62 paper machine and associated sheeter will be idled by the end of June. Production of fluff pulp is continuing uninterrupted and the site is restarting its pulp dryer, increasing pulp capacity. No employees will be laid off, the company said.
Mohawk Fine Papers, certain assets of which were recently acquired by Fedrigoni Group, shut down a site in Ohio in February. The sudden closure of the Ashtabula site resulted in 95 layoffs effective Feb. 16.
SEE, the company formerly known as Sealed Air, disclosed in a February WARN notice that it’s closing a site in Saddle Brook, New Jersey, impacting 83 workers with layoffs expected between June and September. During an earnings call this week, co-CEO Emile Chammas said the company completed three plant closures in 2023 and is in the process of shuttering four additional sites, with more under review.
Sonoco announced permanent closures in Sumner, Washington, and Memphis, Tennessee. The Washington closure of an uncoated paperboard mill, affecting 55 workers, was effective immediately. More drawn-out closing activities at the Tennessee ends and closures facility, affecting 62 workers, were set to begin Feb. 1.
Stora Enso expects to lay off up to 1,000 employees across all divisions under a “profit improvement” program that the company announced Feb. 1. Most of the layoffs are expected to occur in the first half of 2024, with the majority of cost savings expected to be realized in 2025.
Tetra Pak announced Feb. 27 that over the next year it will shutter packaging material production operations in the Jurong region of Singapore and consolidate its Singapore-based production to other factories in the region, impacting 300 employees. The company said the Jurong factory started up in 1982, but since then market dynamics have changed significantly. Tetra Pak said it consulted the Food, Drinks and Allied Workers Union in Singapore prior to the announcement.