Caraustar Consolidates Two Michigan Tube Converting Operations

Caraustar Industries Inc., Austell, Ga., a supplier of recycled paperboard products in North America, has announced the consolidation of its two operations in Saginaw, Mich. into one new facility.

The two older facilities were turn-of-the-century, multi-storied buildings and were not designed for efficient manufacturing operations, according to Caraustar. The new facility provides more streamlined operations while reducing work in process and materials handling costs, the company says.

The consolidation continues Caraustar’s cost reduction strategy in geographic markets while ensuring long-term sustainability and competitiveness, according to a company press release. The new facility allows for better and more efficient layout of machinery and processes, the company adds As a result, Caraustar will dispose of redundant assets, eliminate certain annual fixed costs, improve productivity, reduce direct labor costs and increase its ability to focus on new product development.

“This move is a significant commitment to our Saginaw operations, customers and employees,” says Paul Curtis, vice president and regional manager. “It positions the operation to continue to be the first choice provider of tubes to the automotive industry. This consolidation will improve productivity while reducing manufacturing costs; which are necessary in today's competitive environment.”

More information is available at www.caraustar.com.