Greif announced Thursday morning that it intends to close a paperboard mill in Los Angeles this summer.
Approximately 72 employees will be affected by the closure, which is slated for June.
“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 in a statement. “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.”
The mill produces coated recycled paperboard and uncoated recycled paperboard, and its closure will result in removing an estimated 50,000 tons of CRB and 22,000 tons of URB capacity from the company’s system. This move also will cease Greif’s coated paperboard production on the West Coast.
The Los Angeles mill closure is due to increased costs and limited integration opportunities, the company said in a news release. “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,” Rosgaard said.
The reasoning is similar to what Greif reported when it announced in January that it would permanently end production on a paperboard machine in Austell, Georgia, by the end of March, and that it would permanently close its containerboard and uncoated recycled paperboard mill in Fitchburg, Massachusetts, by the end of May. Collectively, those shutdowns were projected to affect 140 employees.
The closures align with the cost-reduction plan that company executives detailed during an investor day in December. Greif intends to cut $100 million in costs over the next three years, with full benefits expected to materialize by the end of 2027.
Correction: This story has been updated to reflect that Greif’s West Coast production cessation is specifically for coated paperboard.
