- July 30, 2002, PRESS RELEASE
STAMFORD, CT, USA—MeadWestvaco reports it plans to close its Consumer and Office Products Group envelope plant located in Worcester, MA, by late September this year.
The plant employs about 150, and co. says these employees will be offered outplacement assistance. MeadWestvaco adds that over the next 60 days, it will continue to serve customers from the Worcester facility. The production of a majority of the value-added product made at the plant will be transferred to other MeadWestvaco envelope plants. "Customers receiving our high-quality envelopes will continue to be served through our other envelope converting facilities and other strategic sources that will meet our stringent operating standards," adds co.
Says John Taylor, GM, Envelope Products Group at MeadWestvaco: "Today's business environment requires us to reduce cost to remain competitive. Closing the Worcester facility is a result of the continuting evolution of our marketplace and will allow the Envelope Products Group to continue meeting the requirements of our customers while reducing our costs simultaneously."
MeadWestvaco's Worcester plant closing will result in the co. incurring a pretax charge of up to $11 million during Q3. This charge is associated with employee restructuring benefit payments and other closing-related expenses. The co. says it expects this action to have a positive subsequent effect on earnings.
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