- January 14, 2004, PRESS RELEASE
ATLANTA, GA, USA—Caraustar Industries, Inc. reports it will close Cedartown Paperboard, Cedartown, GA, a recycled uncoated paperboard manufacturing facility with an annual capacity of 28 thousand tons. All of the paperboard produced at this facility had been consumed internally by Caraustar converting operations and will be relocated to improve capacity utilization at other Caraustar paperboard mills.
According to Caraustar, the closure of Cedartown Paperboard is part the company's previously announced activities to rationalize operations to better utilize capacity and achieve greater cost efficiencies. Associated with this mill closure, Caraustar will record a pre-tax charge of approximately $3 million (US), of which approximately $2.5 million will be non-cash. This rationalization is expected to generate an estimated $2 million in annual pre-tax cash savings. The closure will affect approximately 43 employees, adds Caraustar.
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