On August 27, 2008, Sonoco will permanently close its uncoated recycled paperboard mill in Montreal, Canada. The mill has an annual capacity to produce 48,000 ton of heavyweight coreboard that has been principally used for the company's internal converting operations. Its closure will affect 53 employees.
James Harrell, division vice president and general manager, Paper North America, states: "A significant downturn in the Canadian paper industry has resulted in a decline in demand for cores and subsequently in coreboard. In addition, escalating energy, transportation and chemical costs have further impacted the profitability of the mill, making it unpractical to run it at less than full capacity. As a result, we have no other choice than to close down operations."
Following the closure, Sonoco will operate 23 paper mills and 33 paper machines worldwide. It will maintain paperboard operations at its Trent Valley, Trenton, and Brantford, mills in Ontario to meet its customers' needs.
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