Greif will permanently close its Merced, California facility in September 2025, impacting 43 jobs as part of cost optimization efforts.
Quiver AI Summary
Greif, a leading industrial packaging company, has announced the permanent closure of its steel and polymer drum facility in Merced, California, scheduled for September 2025, as part of its cost optimization strategy aimed at eliminating $100 million in expenses. President and CEO Ole Rosgaard acknowledged the difficult decision and expressed gratitude to the Merced team for their contributions. The closure will affect approximately 43 employees, who will receive severance and career placement support. Following the closure, customer orders will be handled through Greif's remaining facilities. The company remains optimistic about the long-term potential of its steel and polymer business and is committed to enhancing its focus in key markets.
Potential Positives
- The decision to close the Merced facility is part of a strategic optimization effort expected to remove $100 million in costs, improving overall financial performance.
- Remaining operations will allow customer orders to be fulfilled through the company's extensive global network, ensuring operational continuity.
- The company is committed to supporting affected employees with severance packages and career placement services, demonstrating a focus on employee welfare.
Potential Negatives
- The permanent closure of the Merced facility may indicate underlying challenges within the company's operational efficiency, suggesting potential weaknesses in their existing business model.
- Approximately 43 positions will be impacted by the closure, which could lead to negative publicity regarding job losses and the company's commitment to employee welfare.
- This decision to close a facility comes in the context of a significant cost-reduction initiative, which may raise concerns about the company's overall financial stability and long-term strategy.
FAQ
Why is Greif closing the Merced facility?
Greif is closing the Merced facility as part of its optimization efforts to remove $100 million in costs from the business.
When will the Merced facility cease operations?
The Merced facility is expected to cease operations in September 2025.
How many employees will be impacted by the closure?
Approximately 43 positions will be impacted by the closure of the Merced facility.
What support will be provided to affected employees?
Greif will provide severance packages and career placement services to support affected employees during the transition.
How will customer orders be fulfilled after the closure?
After the closure, customer orders will be fulfilled through Greif's remaining global steel and polymer network.
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, Aug. 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 steel and polymer drum facility in Merced, California as part of its previously announced optimization efforts. The facility is expected to cease operation in September 2025.
“Making the decision to close a facility is always difficult” said Greif President and CEO Ole Rosgaard. “I want to express my deep gratitude to our colleagues in Merced for their hard work over the years and the positive impact they’ve had on the company and surrounding community. We are committed to doing everything we can to make this transition as easy as possible, including providing severance packages and career placement services.”
The decision to close the facility, which produces both steel drums and large and small polymer containers, is an important part of delivering on the company’s commitment to remove $100 million in cost from the business. After September, customer orders will be fulfilled through the company’s remaining global steel and polymer network. In total, approximately 43 positions will be impacted.
“We remain confident in the strength of our steel and polymer business and its long-term potential. This is a strategic decision to strengthen our focus in key markets while enhancing the performance of both our existing steel network and broader business portfolio.” said Rosgaard.
About Greif
Greif is a global leader in industrial packaging products and services, pursuing its vision to be 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. Greif also manufactures packaging accessories and provides other packaging services for a wide range of industries. In addition, the company manages timber properties in the southeastern United States. Greif 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.
Media Contact
TJ Struhs
Director, Corporate Communications
[email protected]
| +1 (207) 956-2304
