Greif will permanently close its Los Angeles paperboard mill in June 2025, impacting 72 jobs amid optimization efforts.
Quiver AI Summary
Greif, a leading global provider of industrial packaging products, announced the permanent closure of its paperboard mill in Los Angeles, California, set to take place in June 2025. This decision is part of the company's optimization efforts aimed at improving operational efficiency and is expected to remove significant paperboard capacity from the market. Approximately 72 employees will be affected by the closure, and Greif's leadership emphasized their commitment to supporting impacted workers with severance benefits and career transition resources. The closure is a result of rising costs and limited integration opportunities, but the company's president expressed confidence in Greif's long-term potential and strategic focus on key markets.
Potential Positives
- The closure of the Los Angeles mill is part of a strategic optimization effort aimed at enhancing the performance of Greif’s existing mill network and overall business portfolio.
- This decision enables Greif to focus on key markets, potentially positioning the company for better operational efficiency and profitability in the long term.
- The company has committed to providing meaningful support, such as severance benefits and career transition resources, to impacted employees, demonstrating a commitment to corporate responsibility.
Potential Negatives
- Permanently closing the Los Angeles mill will eliminate 72 jobs, impacting employees and the local community significantly.
- The closure removes a substantial amount of production capacity (50,000 tons of CRB and 22,000 tons of URB), which may affect the company's market presence and competitiveness in the paperboard segment.
- The decision to shut down the mill is a sign of struggling integration opportunities and increased costs, which can indicate broader operational challenges for the company.
FAQ
What is Greif announcing regarding the Los Angeles paperboard mill?
Greif announced it will permanently close the Los Angeles paperboard mill in June 2025 as part of optimization efforts.
How many jobs will be affected by the mill closure?
Approximately 72 positions will be impacted by the closure of the Los Angeles mill.
Why is Greif closing the Los Angeles paperboard mill?
The closure is due to increased costs and limited integration opportunities in the region.
What types of paperboard does the Los Angeles mill produce?
The mill produces coated recycled paperboard (CRB) and uncoated recycled paperboard (URB).
What support will Greif provide to impacted employees?
Greif plans to offer severance benefits and career transition resources to support affected employees.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
DELAWARE, Ohio, May 01, 2025 (GLOBE NEWSWIRE) -- Greif (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today it will permanently close the paperboard mill in Los Angeles, California as part of its previously announced optimization efforts. The Los Angeles mill is expected to cease operation in June 2025.
The mill, which produces both coated recycled paperboard (CRB) and uncoated recycled paperboard (URB) is expected to remove 50,000 tons of CRB and 22,000 tons of URB capacity from the market and will end Greif’s coated paperboard production on the West Coast.
“Closing this facility was not an easy decision, especially knowing the effect it has on our team members, their families, and the surrounding community,” said President and CEO Ole Rosgaard. “I want to sincerely thank our Los Angeles colleagues for their hard work and commitment over the years. As we move forward, our focus is on providing meaningful support, including severance benefits and career transition resources, to help them through this change.”
In total, approximately 72 positions will be impacted. Closing the Los Angeles Mill is a result of increased costs and limited integration opportunities.
“We remain confident in the strength of our business and its long-term potential. This is a strategic decision intended to strengthen our focus in key markets while enhancing the performance of both our existing mill network and broader business portfolio,” said Rosgaard.
About Greif
Greif is a global leader in industrial packaging products and services and is pursuing its vision: being the best customer service company in the world. The Company produces steel, plastic and fiber drums, intermediate bulk containers, reconditioned containers, jerrycans and other small plastics, containerboard, corrugated sheets and products, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The Company also manufactures packaging accessories and provides other services for a wide range of industries. In addition, Greif manages timber properties in the southeastern United States. The Company has a workforce of over 14,000 colleagues spread across more than 250 facilities in 37 countries to serve global as well as regional customers. Additional information is on the Company's website at www.greif.com .
Media Contact
TJ Struhs
Director, Corporate Communications
[email protected]
| +1 (207) 956-2304
