Caraustar Closes Reading Paperboard Mill In Pennsylvania

Sinking Spring, PA - Caraustar Industries has closed its Reading Paperboard mill in Sinking Spring, PA. The Reading mill is a recycled, uncoated paperboard facility with a capacity of 16,000 short tpy. Caraustar expects to consolidate all of the mill's production into other existing company locations, which it says will increase company-wide mill capacity utilization.

The closure of the Reading mill, Caraustar notes, reflects the company's previously announced plans to achieve greater cost efficiencies throughout its system and better utilize capacity. Associated with this mill closure, the company will record a pre-tax charge of approximately $1.9M, of which approximately $1.2M will be non-cash. This rationalization is expected to generate an estimated $1.6M in annual pre-tax savings.

The closure of the Reading mill will affect approximately 26 salaried and hourly employees. Caraustar says it will provide a comprehensive program of separation pay, benefits coverage, and job assistance to affected employees to facilitate their transition to alternate employment.

SOURCE: TAPPI