Greif, Inc. Announced Strategic Actions Including Mill Closure

SEATTLE (Scrap Monster):  Delaware, Ohio-based leading industrial packaging products and service provider Greif, Inc. announced strategic decisions.

The Number 1 Paperboard Machine (A1) in Austell, Georgia has permanently stopped manufacturing, the business announced in a news release. The business also said that its containerboard and uncoated recycled paperboard (URB) facility in Fitchburg, Massachusetts, would be permanently closed. About 140 roles are probably going to be impacted by the decisions. Additionally, this will result in a 100,000-ton decrease in Greif's mill network's containerboard capacity and a 90,000-ton decrease in its URB capacity.

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Increased prices and a noticeable drop in demand for the items in important end-use areas, including as furniture, books, and binders, are the primary reasons for A1's production halt. High operational expenses and the requirement for a sizable capital expenditure to keep the mill running are the reasons behind the Fitchburg mill's closure.

According to Ole Rosgaard, President and CEO of Greif, Inc., the decisions were "extremely difficult" because they affected the company's coworkers and their families as well as the community at large. In addition to thanking its colleagues in Austell and Fitchburg for their contributions to the business, he pledged to offer all impacted employees support, including outplacement and severance benefits.

While the Fitchburg mill closure is anticipated to be finished by May 2025, the A1 asset's production will stop by the end of March this year.