Caraustar Industries, Inc. (CSAR) To Close One Mill and Idle Another

Caraustar Industries announced today that due to the economic slowdown, it is closing its Richmond, VA paperboard mill and putting its Charlotte, NC mill on standby. The Richmond Paperboard Mill is closing permanently effective December 11, 2008, generating an anticipated $5.1 million in pre-tax savings for Caraustar. The Charlotte mill will go on standby effective December 19 until demand improves. The company expects to open the Charlotte mill again early in 2009.

‘The vice president of Caraustar’s sales Mill Group, Greg Bartlett, commented on the closure:

"Recession and declines in product demand necessitate that the company move aggressively to retain cost efficiencies and increase capacity utilization across its mill system. Strategic capital investments have enhanced our mill system and allowed for this further consolidation. We value our customer relationships and will continue to supply all of their needs from other Caraustar mills."

Leave a Reply

Your email address will not be published. Required fields are marked *