Sonoco Closing Chicago Molded Plastics Plants

Sonoco is closing two of its Chicago area injection molded plastics plants, effective January 31, 2007.

The closings are part of the company's previously announced plans to reduce its cost structure, including the closing of 12 plants globally in 2007.

Sonoco also announced that its wholly owned subsidiary, Sonoco-Alcore S.Ar.l., has acquired the remaining 75 percent interest in Demolli Industria Cartaria S.p.A.

Demolli, with annual sales of about $60 million, is Italy's largest manufacturer of tubes and cores and recycled paperboard. The company serves markets in Italy and northern Europe. The transaction includes the purchase of three tube and core manufacturing facilities and a recycled paperboard mill.

With the completion of the Demolli transaction, Sonoco holds 100 percent interest in and operates 30 tube and core plants and seven paper mills in Europe.

Late last year Sonoco had purchased from the Ahlstrom Corp. its 35.5 percent interest in Sonoco-Alcore, S.a.r.l. The combined purchase price of the Demolli and Ahlstrom transactions is about $120 million.