Greif shuts down paperboard machine, announces mill closure

USA – In a move to optimize its mill network’s profitability, Delaware-based packaging company Greif has announced plans to permanently shut down a paperboard machine in Georgia and close a containerboard mill in Massachusetts.

“These decisions are extremely difficult due to their impact on our colleagues, their families, and the broader community,” said Greif President and CEO Ole Rosgaard in a statement.

By the end of March, Greif will cease production on its No. 1 paperboard machine (A1) at the uncoated recycled paperboard (URB) and specialty converting site in Austell, Georgia.

The company cited rising costs and declining demand in key markets such as furniture, books, and binders as reasons for discontinuing the nonintegrated asset.

Meanwhile, by the end of May, Greif will permanently shut down its containerboard and URB mill in Fitchburg, Massachusetts.

High operating costs and the need for significant capital investment drove the decision to close the facility.

“We are grateful to our colleagues in Austell and Fitchburg for their contributions and are committed to supporting them with severance benefits and outplacement assistance,” Rosgaard added.

The closures will affect approximately 140 jobs and reduce Greif’s production capacity by 100,000 tons of containerboard and 90,000 tons of URB.

Greif expands sustainable packaging with EnviroRAP

Despite the mill closures, Greif remains focused on innovation. In October last year, the company introduced EnviroRAP, a 100% recycled paperboard designed for the food industry.

With strong resistance to oil and grease, EnviroRAP is suitable for packaging various food products, including those with aqueous or fatty content.

Its water-based coating is fully recyclable and repulpable, making it a sustainable alternative to traditional poly-coated paperboard, which can be more challenging to recycle due to its plastic layer.

The inline coating application streamlines production by eliminating a separate coating stage, reducing costs, minimizing material transport, and lowering carbon emissions.

EnviroRAP’s versatility is further enhanced by its caliper range of 0.012 to 0.030 inches, catering to diverse food packaging needs.

“We’re thrilled to launch EnviroRAP as a major step forward in paper packaging,” said Vince Fields, Product Development Manager at Greif.

“This solution provides our food industry customers with a sustainable alternative to plastic packaging while aligning with consumer demand for eco-friendly options.”

Developed by Greif’s Innovation Team in collaboration with customers, EnviroRAP underscores the company’s commitment to sustainable packaging solutions that benefit both businesses and the environment.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE