PCA shuts down two key plants amid sluggish demand, cutting 168 positions

USA – Packaging Corporation of America plans to permanently close two corrugated packaging facilities by the end of 2025, according to recent filings with state labor departments. 

The moves target a full-line plant in Allentown, Pennsylvania, set for shutdown on December 1, and another in Salisbury, North Carolina, scheduled for December 19. 

These actions eliminate significant production capacity from PCA’s nationwide network of containerboard and converting operations.

In Allentown, the closure will impact 60 employees, while Salisbury faces a larger hit with 108 roles eliminated. 

Reports indicate the Salisbury layoffs will unfold in stages over two weeks, starting December 5, to manage the transition. 

PCA’s decisions come through Worker Adjustment and Retraining Notification notices submitted earlier this month, outlining severance details and the irreversible nature of the sites’ decommissioning. 

Company representatives have called this a difficult business decision driven by ongoing market dynamics.

Demand for corrugated boxes has weakened throughout 2025, pushing producers to adjust their footprints. 

Data from industry monitors show U.S. shipments dipped to the lowest second-quarter levels in a decade, with third-quarter figures continuing the downward trend compared to the previous year. 

Retailers and manufacturers have scaled back orders for packaging materials, contributing to excess capacity across North American facilities. 

A report by market analysts points to full-year shipment declines as a key factor in such operational shifts.

The closures carry direct consequences for regional logistics and employment. 

Customers in the Mid-Atlantic and Southeast may redirect volumes to other PCA locations or rival converters, potentially raising delivery timelines and transportation expenses. 

For the affected workforce, state agencies are stepping in with job placement programs, a standard response to large-scale WARN notifications. 

Beyond payroll cuts, the shutdowns trim converting output for sectors like e-commerce, food and beverage, and industrial goods, where corrugated materials play a central role.

Earlier this month, another filing surfaced about additional PCA site rationalizations, signaling broader efforts to streamline operations.

In a statement, PCA’s operations lead noted, “We remain committed to supporting our teams through this period while adapting to evolving customer needs.” 

Local outlets in Pennsylvania and North Carolina have covered the employee counts and timelines, with community groups already mobilizing retraining workshops.

Looking ahead, some projections anticipate a demand uptick in 2026, allowing surviving plants to handle increased loads without reopening idled ones. 

PCA’s network, spanning over 100 sites, will absorb the lost volume, maintaining service continuity for clients nationwide.

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