USA – South Carolina-based packaging producer Sonoco Products Co. has announced the permanent closure of its uncoated recycled paperboard (URB) mill in Sumner, Washington, effective immediately.
The mill, which had a production capacity of 40,000 tonnes per year of URB, has been in operation since 1915 and has been owned by Sonoco since 1980.
“Closing facilities is never an easy decision,” says Palace Stepps, vice president of North America paper products and fiber supply at Sonoco.
“The mill’s team has played an important role in Sonoco’s paper operations for over 40 years, and we appreciate the hard work and dedication of the entire team.”
According to Sonoco, the closure is expected to impact 55 employees, while current customers will be served from other mill operations.
“As we continue to evaluate our manufacturing footprint based on the ability to cost-effectively serve our customers, we are committed to [providing] support to our customers and employees through this transition,” Stepps says.
Sonoco is of North America’s largest recovered fiber consumers. In the most recent list published by Recycling Today, the company ranked ninth, consuming 1.4 million tonnes across 13 mills. Prior to the Sumner closure, Sonoco had 10 URB mills across the U.S. and Canada.
This move come barely a month after Sonoco announced the finalization of an agreement by some of its subsidiaries to sell its Protective Solutions business to Black Diamond Capital Management, LLC for approximately US$80 million in cash.
This strategic move is aligned with the company’s vision to optimize its portfolio by concentrating on its core businesses.
The Protective Solutions unit, a prominent player in North America’s packaging sector, specializes in crafting components from materials such as expanded polypropylene and polystyrene foam. It caters to a diverse range of industries, including the automotive and electronics segments.
Operating nine manufacturing facilities with around 900 employees and reporting financial results in Sonoco’s All Other Businesses segment, the Protective Solutions business has played a crucial role in Sonoco’s operations.
Howard Coker, President, and CEO of Sonoco, expressed, “We believe this divestiture builds on our previously articulated strategy to divest non-core assets and to refocus our efforts on core businesses to achieve greater scale, profitability, and market leadership.”
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