Greif Announces Strategic Actions
Greif (NYSE: GEF), a global industrial packaging company, announced the permanent closure of two production facilities. The company will cease operations of the Number 1 Paperboard Machine (A1) in Austell, GA, and close its containerboard and uncoated recycled paperboard (URB) mill in Fitchburg, MA. These strategic actions will impact approximately 140 positions and reduce the company's containerboard capacity by 100,000 tons and URB capacity by 90,000 tons.
The closure of A1, a non-integrated URB asset, is attributed to increased costs and declining demand in furniture, books, and binders markets. The Fitchburg mill closure decision was driven by high operating costs and required significant capital investment. Production will cease at A1 by the end of March 2025 and at Fitchburg by May 2025. The company will provide severance benefits and outplacement assistance to affected employees.
Greif (NYSE: GEF), un'azienda globale nel settore del packaging industriale, ha annunciato la chiusura permanente di due impianti di produzione. L'azienda interromperà le operazioni della Macchina 1 per Cartone (A1) ad Austell, GA, e chiuderà il suo stabilimento per cartone ondulato e carte riciclate non rivestite (URB) a Fitchburg, MA. Queste azioni strategiche influenzeranno circa 140 posti di lavoro e ridurranno la capacità produttiva del cartone dell'azienda di 100.000 tonnellate e quella dell'URB di 90.000 tonnellate.
La chiusura di A1, un asset URB non integrato, è dovuta all'aumento dei costi e alla diminuzione della domanda nei mercati dei mobili, dei libri e dei raccoglitori. La decisione di chiudere lo stabilimento di Fitchburg è stata motivata da elevati costi operativi e dalla necessità di un significativo investimento di capitale. La produzione terminerà per A1 entro la fine di marzo 2025 e per Fitchburg entro maggio 2025. L'azienda fornirà indennità di licenziamento e assistenza per la ricollocazione ai dipendenti colpiti.
Greif (NYSE: GEF), una empresa global de empaquetado industrial, anunció el cierre permanente de dos instalaciones de producción. La compañía cesará las operaciones de la Máquina de Cartón Número 1 (A1) en Austell, GA, y cerrará su fábrica de cartón ondulado y papel reciclado no recubierto (URB) en Fitchburg, MA. Estas acciones estratégicas afectarán aproximadamente 140 puestos de trabajo y reducirán la capacidad de producción de cartón de la empresa en 100,000 toneladas y la capacidad de URB en 90,000 toneladas.
El cierre de A1, un activo URB no integrado, se atribuye al aumento de costos y a la demanda declinante en los mercados de muebles, libros y carpetas. La decisión de cerrar la fábrica de Fitchburg fue impulsada por altos costos operativos y una significativa inversión de capital requerida. La producción en A1 cesará a finales de marzo de 2025 y en Fitchburg en mayo de 2025. La empresa proporcionará beneficios por despido y asistencia para la recolocación a los empleados afectados.
Greif (NYSE: GEF), 글로벌 산업 포장 회사, 두 개 생산 시설의 영구적인 폐쇄를 발표했습니다. 회사는 조지아주 오스텔(Austell)의 1호 종이판 기계(A1)의 운영을 중단하고 매사추세츠주 피치버그(Fitchburg)의 판지 및 비코팅 재활용 지식(URB) 공장을 폐쇄합니다. 이러한 전략적 조치는 약 140개의 일자리에 영향을 미치고 회사의 판지 생산 능력을 100,000톤 줄이며 URB 생산 능력을 90,000톤 줄입니다.
A1의 폐쇄는 비통합 URB 자산으로, 가구, 책 및 바인더 시장에서의 수요 감소와 비용 증가에 기인합니다. 피치버그 공장 폐쇄 결정은 높은 운영 비용과 상당한 자본 투자가 필요했기 때문입니다. A1의 생산은 2025년 3월 말까지 중단되며, 피치버그는 2025년 5월까지 중단됩니다. 회사는 영향을 받는 직원에게 퇴직금 혜택과 직업 재배치 지원을 제공할 것입니다.
Greif (NYSE: GEF), une entreprise mondiale spécialisée dans l'emballage industriel, a annoncé la fermeture permanente de deux installations de production. L'entreprise cessera les opérations de la Machine à Carton Numéro 1 (A1) à Austell, GA, et fermera son usine de cartons ondulés et de papiers recyclés non couchés (URB) à Fitchburg, MA. Ces actions stratégiques affecteront environ 140 postes et réduiront la capacité de production de carton de l'entreprise de 100 000 tonnes et la capacité de l'URB de 90 000 tonnes.
La fermeture d'A1, un actif URB non intégré, est attribuée à l'augmentation des coûts et à la baisse de la demande sur les marchés des meubles, des livres et des classeurs. La décision de fermer l'usine de Fitchburg a été motivée par des coûts de fonctionnement élevés et la nécessité d'un investissement en capital significatif. La production s'arrêtera à A1 d'ici la fin mars 2025 et à Fitchburg d'ici mai 2025. L'entreprise fournira des indemnités de licenciement et une assistance à la réorientation professionnelle aux employés concernés.
Greif (NYSE: GEF), ein globales Unternehmen für industrielle Verpackungen, hat die dauerhafte Schließung von zwei Produktionsstätten angekündigt. Das Unternehmen wird die Betriebe der Papiermaschine Nummer 1 (A1) in Austell, GA, einstellen und seine Wellpappen- und unbeschichtete Recycling-Papierfabrik (URB) in Fitchburg, MA, schließen. Diese strategischen Maßnahmen werden voraussichtlich etwa 140 Arbeitsplätze betreffen und die Wellpappen-Kapazität des Unternehmens um 100.000 Tonnen sowie die URB-Kapazität um 90.000 Tonnen reduzieren.
Die Schließung von A1, einem nicht integrierten URB-Asset, wird auf gestiegene Kosten und rückläufige Nachfrage in den Märkten für Möbel, Bücher und Ordner zurückgeführt. Die Entscheidung zur Schließung der Fabrik in Fitchburg wurde durch hohe Betriebskosten und den erforderlichen erheblichen Kapitalinvestitionen vorangetrieben. Die Produktion bei A1 wird bis Ende März 2025 eingestellt, und in Fitchburg wird sie bis Mai 2025 eingestellt. Das Unternehmen wird den betroffenen Mitarbeitern Abfindungen und Unterstützung bei der beruflichen Neuorientierung anbieten.
- Strategic reduction in production capacity to maximize mill network profitability
- Cost reduction through closure of high-operating-cost facilities
- Avoidance of significant capital investment requirements at Fitchburg mill
- Reduction of 100,000 tons in containerboard capacity
- Reduction of 90,000 tons in URB capacity
- Loss of approximately 140 jobs
- Declining demand in major end-use markets
Insights
This strategic restructuring by Greif represents a significant operational optimization that will likely strengthen the company's financial position despite short-term costs. The closure of the Austell A1 machine and Fitchburg mill directly addresses two critical challenges in the paper packaging sector:
The URB market has been experiencing structural decline, particularly in traditional end-uses like furniture, books and binders. This move to reduce 90,000 tons of URB capacity is a proactive step to align production with market realities. The timing is particularly strategic, as it prevents potential margin erosion from maintaining underutilized assets.
The 100,000 tons reduction in containerboard capacity reflects an industry-wide need to optimize production networks. By closing the high-cost Fitchburg facility rather than investing in upgrades, Greif is likely to see improved capacity utilization rates across its remaining mills, leading to better cost absorption and operational efficiency.
The execution timeline (March-May 2025) appears well-planned to minimize market disruption and manage inventory transitions. While severance and closure costs will impact near-term results, the long-term benefits include reduced fixed costs, improved capacity utilization and enhanced competitive positioning in core markets.
These actions signal management's commitment to portfolio optimization and should result in improved EBITDA margins once fully implemented. The strategic rationale aligns with industry trends toward consolidating production at more efficient facilities while maintaining service capabilities.
DELAWARE, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Greif (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today it will permanently cease production on the Number 1 Paperboard Machine (A1) in Austell, GA and permanently close the containerboard and uncoated recycled paperboard (URB) mill in Fitchburg, MA.
“Decisions like these are extremely difficult because of the impact it has on our colleagues and their families, as well as the larger community,” said President and CEO Ole Rosgaard. “We are grateful to our colleagues in Austell and Fitchburg for their contributions to the company and are committed to helping them navigate next steps by providing severance benefits and outplacement assistance.”
In total, approximately 140 positions will be impacted. Ceasing production at A1 – a non-integrated URB asset for the company - is a result of increased cost and declining demand in its major end use markets of furniture, books, and binders. The combination of high operating costs and the need for significant capital investment were the determining factors in the decision to close the Fitchburg mill. Together, these actions will reduce the containerboard capacity of Greif’s mill network by 100,000 tons, and URB capacity by 90,000 tons.
“We believe strongly in the fundamentals of our business. These strategic actions will refine our participation in the market and help us maximize the profitability of our mill network and our overall business portfolio” said Rosgaard. The company expects to cease production on the A1 asset by the end of March 2025 and Fitchburg by May 2025.
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
tj.struhs@greif.com | +1 (207) 956-2304
FAQ
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