Greif's Strategic Shifts: Closure of LA Paperboard Mill
Greif Announces Closure of Los Angeles Paperboard Mill
Greif, a prominent player in the global industrial packaging sector, has revealed its decision to permanently close the paperboard mill located in Los Angeles. This move is part of a broader optimization strategy aimed at streamlining operations. The closure of the mill is expected to take place in June.
Impact on Production Capacity
The Los Angeles mill has been a notable producer of both coated recycled paperboard (CRB) and uncoated recycled paperboard (URB). With the closure, the market will see a reduction of approximately 50,000 tons of CRB and 22,000 tons of URB capacity. This shift signifies a significant end to Greif’s coated paperboard production on the West Coast, affecting supply channels across the region.
Employee Support and Community Impact
President and CEO Ole Rosgaard expressed that the decision to close the facility was difficult due to the workforce implications. About 72 roles will be affected, and Greif is committed to providing support through severance benefits and career transition resources. The company recognizes the importance of its employees and aims to ease their transition during this change.
Greif's Future Focus
Despite the challenges of closing the Los Angeles mill, Greif remains confident in its business strength and long-term growth prospects. Rosgaard emphasized that this strategic shift is designed to enhance the performance of the existing mill network and to focus on key markets that show potential for growth.
About Greif
As a leader in industrial packaging, Greif is known for its diverse product offerings, including steel, plastic, and fiber drums, intermediate bulk containers, and various specialty products. With a workforce exceeding 14,000 spread across 250 facilities in 37 countries, Greif is dedicated to serving both global and regional customer needs. The company's commitment to excellence in customer service underscores its vision of being the premier choice in the packaging industry. For more information, visit www.greif.com.
Frequently Asked Questions
Why did Greif close the Los Angeles paperboard mill?
The closure is part of Greif's optimization efforts due to increased costs and limited integration opportunities within the market.
What types of products were manufactured at the Los Angeles mill?
The mill produced coated recycled paperboard (CRB) and uncoated recycled paperboard (URB), which are essential in the packaging industry.
How many employees are affected by this closure?
Approximately 72 positions will be impacted by the closure of the Los Angeles mill.
What support will be offered to affected employees?
Greif plans to provide severance benefits and career transition resources to assist employees impacted by the mill's closure.
What are Greif's long-term plans post-closure?
Greif intends to strengthen its focus on key markets and enhance the performance of its existing mill network and business portfolio.
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