Update: Sonoco announces shutdown of tube, core operations at Wisconsin facility

The company says the decision was driven by inflation and expects the transition to be complete by March 30, 2023.

Paper tube core

boitano | stock.adobe.com

After Sonoco announced last month it would discontinue its tube and core operations at its production facility in Wisconsin Rapids, Wisconsin, the company has confirmed it will permanently close the facility and 70 employees will be laid off as part of the closure.

The report first was confirmed by the Wisconsin Rapids Tribune, and at that time, Christy Thompson, global marketing and communications representative for Sonoco, said the Atlanta-based recycled packaging producer informed employees and stakeholders about the decision. The transition is expected to be complete by March 30, 2023.

In a letter to the Wisconsin Department of Workforce, Sonoco says layoffs are expected to begin March 31, 2023.

“We constantly review our operating footprint to make sure our production structure effectively supports our overall business goals and our customer demands,” Thompson told the Wisconsin Rapids Tribune in November, noting the decision was driven by inflation and "excess machine and facility capacity" throughout the organization.

Sonoco acquired Corenso Holdings America in 2019 in a deal worth $110 million and included uncoated recycled paperboard and high-performance core facilities in Wisconsin Rapids and Richmond, Virginia.

The company continues to operate a tubes and cores facility in Neenah, Wisconsin.