Caraustar Industries, Inc. Announces Closure of Reading Paperboard Mill
The closure of the Reading mill reflects the company's previously announced plans to achieve greater cost efficiencies throughout its system and better utilize capacity.
16/10/06 Caraustar Industries, Inc. today announced the closure of its Reading Paperboard mill in Sinking Spring, PA. The Reading mill is a recycled uncoated paperboard manufacturing facility with an annual capacity of 16 thousand tons. Caraustar expects to consolidate all of the Reading mill's production into other existing Caraustar locations which will increase capacity utilization in Caraustar's mill system.
The closure of the Reading mill reflects the company's previously announced plans to achieve greater cost efficiencies throughout its system and better utilize capacity. Associated with this mill closure, the company will record a pre-tax charge of approximately $1.9 million, of which approximately $1.2 million will be non-cash. This rationalization is expected to generate an estimated $1.6 million in annual pre-tax savings. The closure of the Reading mill will affect approximately 26 salaried and hourly employees. Caraustar will provide a comprehensive program of separation pay, benefits coverage and job assistance to affected employees to facilitate their transition to alternate employment.
