Packaging Corporation of America is shuttering its corrugated products plant in Richmond, Virginia, a move that reflects the ongoing consolidation of converting operations across the packaging industry.
The Lake Forest, Illinois-based company confirmed it will permanently close the facility at 2000 Richmond Highway, impacting approximately 110 employees, according to a Worker Adjustment and Retraining Notification (WARN) filing on March 31.
Mark Romaniuk, deputy general counsel for PCA, stated the closure was “a difficult business decision.”
Additionally, company officials said the decision was necessary, noting it was working with union representatives and state and local officials to support impacted employees through dislocated worker assistance programs and potential transfers within PCA’s broader network.
“We want to express our sincere gratitude to our Richmond employees for their dedication and service over the years,” Kelly Lorr, PCA’s corporate communications manager, said in an email. “PCA will continue serving customers through other facilities in its network across Virginia and the surrounding region.”
Employees are expected to be released from duty the week of June 1, following the required 60-day notice period, with some potentially remaining on a limited basis beyond that timeframe.
“It is anticipated that the permanent plant closure will affect all employees at the location,” the company added in its WARN filing.
The closure comes as corrugated packaging demand continues to level off after seeing pandemic-era highs as e-commerce-driven volume gains have noticeably faded in recent years. As those volumes have normalized, manufacturers have turned their focus more and more to optimizing plant networks, usually by closing smaller or less efficient facilities and shifting production to larger, more automated sites.
Mark Wilde, a longtime packaging industry analyst, said the slowdown reflects both cyclical and structural forces.
“We are in year four of flat to declining box shipments in the US, and that’s partly the flipside of the COVID-era surge, but it also reflects longer-term structural changes in the market,” he said.
PCA’s move is not dissimilar to what’s happening across the sector. In recent years, companies such as International Paper and WestRock have closed or consolidated converting plants while investing in high-capacity operations designed to improve throughput and reduce per-unit costs. Those strategies are often paired with investments in automation and logistics to maintain service levels with a leaner footprint.
Wilde noted that the pressures go well beyond recent demand shifts.
“Box shipments have lagged the broader economy for much of the last 25 years, driven by offshoring, alternative packaging formats and e-commerce players reducing package size and eliminating ‘dead air,’” he said.
In Richmond, PCA appears to be following a similar playbook. Although the converting facility is closing, the company said it will continue to support customers through other plants in its network, suggesting production will be redistributed rather than eliminated entirely.
Beyond the immediate impact, the closure highlights the challenges facing packaging producers today. Companies must weigh proximity to customers against the economics of scale, particularly as costs for labor, transportation and energy remain elevated. At the same time, customers are demanding faster turnaround times, more customization and increased sustainability, pressures that often favor newer, more technologically advanced plants over legacy operations.
PCA’s Richmond plant closure is a clear example of that. With plans to reallocate production within its system while maintaining service through its broader network, the company is positioning itself to operate more efficiently without fully stepping away from a key market.
As the corrugated packaging landscape continues to evolve, additional network adjustment, be it through closures, consolidations or new investments, are likely to remain a defining feature of the industry.
