Smurfit Westrock to close 4 facilities, 650 workers affected

As part of its continued network optimization effort, earlier this week, Smurfit Westrock announced plans to permanently close four facilities across the U.S. and Germany, impacting 650 employees and shrinking its containerboard and coated recycled paperboard (CRB) capacity.

The company is shutting down its CRB mill in St. Paul, Minnesota, and ceasing production at its recycled containerboard mill in Forney, Texas, and Smurfit Westrock also says it has initiated consultations with local works councils in Germany to permanently close two converting facilities there.

As a result of the closures, Smurfit Westrock’s containerboard and CRB capacity is expected to shrink by more than 500,000 tons.

“While closing facilities is never an easy decision, it is based on a realistic expectation of current and future capacity needs, operating costs and an unrelenting focus on improving our business,” Smurfit Westrock President and Group CEO Tony Smurfit says in a news release. “We are very grateful for the significant contributions made by the teams at these locations over the years and we will do all we can to support them throughout this process.” 

The Forney mill produces 100 percent recycled linerboard and medium, while the St. Paul mill manufactures a range of containerboard liners and flutings for corrugated board and packaging.

Approximately 650 employees in the U.S. and Germany will be impacted by the closures, and Smurfit Westrock says it will provide support to workers during the transition, including career transition assistance and relocation opportunities where possible.

According to a WARN notice filed April 30 in Minnesota, layoffs at the St. Paul facility will begin around June 30.

“Across our regions, we're reducing our cost base in our paper mill systems, investing to improve reliability and output and ensuring we have the best converting machines available to meet the needs of our modern customers,” Tony Smurfit said during the company’s first-quarter earnings call Thursday.

“In the last 48 hours, we've announced the closure of over 500,000 tons in paper capacity in the U.S., which, coupled with the recent actions in Mexico and the Netherlands, totals nearly 600,000 tons. These actions will make the company stronger as we invest to ensure better longer-term returns across our business units. I remain very excited about the combination we created some 10 months ago."