So far this year, Greif has closed two facilities and shut down a recycled paperboard machine. | JHVEPhoto/Shutterstock
Greif is ending its coated paperboard production on the West Coast by closing its recycled coated paperboard mill in Los Angeles, effective in June.
The move is part of “previously announced optimization efforts,” a press release noted, and the LA mill was selected due to increased costs and “limited integration opportunities.” As a result, 72 workers will lose their jobs and the company will lose 50,000 tons of coated recycled paperboard capacity and 22,000 tons of uncoated recycled paperboard capacity.
The announcement comes after Smurfit Westrock recently announced four plant closures, part of a “streamlining and decentralization” effort. Earlier this year, Greif also shut down a recycled paperboard machine in Georgia and an uncoated recycled paperboard mill in Massachusetts, reducing its overall containerboard capacity by 100,000 tons and its uncoated recycled paperboard capacity by 90,000 tons.
President and CEO Ole Rosgaard said in the press release the LA closure was “not an easy decision” and that “we remain confident in the strength of our business and its long-term potential.”
“This is a strategic decision intended to strengthen our focus in key markets while enhancing the performance of both our existing mill network and broader business portfolio,” Rosgaard said.
The company has three other facilities in the LA area, including a warehouse, a tubes and cores production facility and a steel drum facility. It also has four more facilities in the San Francisco area and two in Washington.