Sonoco announced that it would not reopen its Downingtown, Pa., recycled paperboard mill following a fire last month that caused about $500,000 in damage, according to Marty Pignone, vice president - Paper North America.
The plant principally serves Sonoco’s internal converting operations. The company will offer outplacement assistance to employees.
"Downingtown has been a good mill with excellent employees, and we regret that this decision is necessary. Factors that led to this decision include the significant investments that would be needed to repair the fire damage and the fact that incremental productivity improvements across our paper mill system have created adequate capacity to assimilate the volume currently produced at Downingtown.
The Downingtown mill has an annual production capacity of approximately 73,000 tons," said Pignone.
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