Caraustar Industries announced today that it is converting 2 older production facilities in Saginaw, MI into one new facility to produce recycled paperboard products. Because the newer facility has a better, more modern design, the company will be able to improve productivity while saving on the cost of maintaining two separate plants, direct labor costs, and some annual fixed costs.

Paul Curtis, Caraustar’s VP and regional manager, explained the significance of the move for his company as follows:

"This move is a significant commitment to our Saginaw operations, customers and employees. It positions the operation to continue to be the first choice provider of tubes to the automotive industry. This consolidation will improve productivity while reducing manufacturing costs; which are necessary in today’s competitive environment."