Greif to close Merced facility shifting focus to optimize operations

USA – Global industrial packaging leader, Greif, has announced the permanent closure of its steel and polymer drum manufacturing facility in Merced, California, set to take effect in September 2025. 

The decision aligns with the company’s strategy to enhance efficiency and reduce costs by US$100 million, focusing on high-growth areas within its global portfolio.

According to Greif, the Merced facility, which produces steel drums and both large and small polymer containers, will cease operations, impacting approximately 43 employees. 

“I want to express my deep gratitude to our colleagues in Merced for their hard work over the years and the positive impact they’ve had on the company and the surrounding community,” Greif President and CEO Ole Rosgaard said in a statement.

“We are committed to doing everything we can to make this transition as easy as possible, including providing severance packages and career placement services.”

Following the closure, customer orders will be seamlessly redirected to Greif’s extensive network of steel and polymer production sites worldwide. 

Rosgaard underscored the strategic intent behind the move, stating, “We remain confident in the strength of our steel and polymer business and its long-term potential.”

“This is a strategic decision to strengthen our focus in key markets while enhancing the performance of both our existing steel network and broader business portfolio.”

Greif, a global leader operating over 250 facilities across 37 countries with more than 14,000 employees, is prioritizing investments in polymer-based products, such as intermediate bulk containers, which offer greater profitability and stability compared to traditional steel drums.

The company also manages timber properties in the southeastern United States, further diversifying its portfolio.

In related developments, a report by Packaging Dive highlights Greif’s ongoing optimization efforts, including the recent closure of a paperboard mill in Los Angeles in June 2025, which ended its coated paperboard production on the West Coast. 

Additionally, last month, Greif finalized the sale of its containerboard business to Packaging Corporation of America for US$1.8 billion, encompassing two mills and eight corrugated plants across the U.S. 

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