Industrial packaging products and services provider Greif has confirmed its decision to permanently shut down its paperboard facility located in Los Angeles, California, US.
The closure, part of the company’s broader effort to streamline operations, is expected to take place by June 2025.
The facility manufactures both coated and uncoated recycled paperboard (URB). Its closure will withdraw 50,000 tons (t) of coated and 22,000t of uncoated paperboard from production.
This will also conclude Greif’s coated paperboard output on the US’ West Coast.
Around 72 jobs will be affected by the plant’s closure, according to the company.
The company cited higher operational expenses and limited integration prospects as reasons for the decision.
Greif president and CEO Ole Rosgaard said: “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.
“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.”
In January this year, Greif revealed plans to end operations on its Number 1 Paperboard Machine, a standalone uncoated recycled paperboard unit based in Austell, Georgia, US, by March 2025.
The company also intends to permanently close its containerboard and URB facility in Fitchburg, Massachusetts, by May 2025. These closures are expected to affect approximately 140 employees.
