Smurfit Westrock closes California plant in ongoing consolidation drive

USA – Smurfit Westrock, a major player in sustainable packaging solutions, plans to shut down its corrugated box manufacturing facility in City of Industry, California, by mid-December. 

A worker adjustment and retraining notification letter indicates that the closure will impact up to 141 employees, prompting local support services for those affected.

The decision forms part of broader efforts to streamline operations following the company’s acquisition of WestRock in summer 2024. 

According to company disclosures, this marks the ninth such permanent facility closure since the merger, targeting sites deemed inefficient or unprofitable. 

Tony Smurfit, CEO of Smurfit Westrock, addressed the move during the third-quarter investor call.

“We will continue closing down inefficient or loss-making operations, including the recently announced closure of a corrugated facility in California,” he stated.

In the letter to workers, management outlined severance packages and assistance programs, including job placement aid through partnerships with regional workforce agencies. 

Employees received notice in early November, giving them time to explore retraining options.

The plant, operational for decades, produced corrugated packaging primarily for consumer goods sectors, contributing to the company’s annual output of millions of sustainable shipping solutions.

This closure aligns with industry trends toward operational efficiency in the face of rising material costs and supply chain pressures. 

Smurfit Westrock reported handling over 10 million tons of recovered fiber annually across its network, emphasizing recycled content in its products. 

The California site’s output will shift to nearby facilities in the western U.S., minimizing disruptions to customer deliveries.

In October 2025, the company expanded its use of plant-based barriers in food packaging at a Texas mill, reducing plastic reliance by 15% in select lines. 

This initiative, detailed in industry updates, supports the firm’s goal of achieving 100% renewable or recycled packaging by 2030. 

Executives noted that reallocating resources from underperforming sites like the California plant enables investments in such innovations, with US$50 million earmarked for barrier technology upgrades next year.

Labor representatives expressed concerns over the job losses, calling for enhanced federal support in manufacturing transitions. 

One union official mentioned that members are organizing workshops on green skills training to ease the shift. 

Smurfit Westrock has committed US$2 million in community grants for the City of Industry area, funding local environmental projects like urban tree planting.

As the packaging sector navigates economic challenges, these changes signal a focus on long-term viability. 

The company anticipates completing its consolidation phase by early 2026, with potential for new site openings in high-growth regions. 

Stakeholders await further details on how these adjustments will influence overall production capacity, currently at 50 billion packaging units yearly.

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