Greif is withdrawing from the coated recycled paperboard business and closing its Sweetwater plant in the US state of Georgia. Production is scheduled to cease by the end of 2026, affecting around 90 employees.
The plant in Austell produces coated recycled paperboard (CRB), uncoated recycled paperboard (URB) and paper grades for the front and back of plasterboard. According to Greif, the closure will result in the loss of around 120,000 tonnes of production capacity annually.
Greif focuses paper production
The packaging company cites the plant's production structure, its limited integration into the Greif network, and its cost position as reasons for the decision. These factors prevented Sweetwater from achieving a sustainably competitive position.
„This is a difficult decision because it impacts our employees, their families and the surrounding community,“ says Greif President and CEO Ole Rosgaard. „Our Sweetwater team has worked hard to serve our customers and improve plant performance. We are grateful for their dedication, professionalism and many contributions to Greif.“
The withdrawal from the CRB business is part of an overarching strategy. According to its own statements, Greif wants to concentrate its resources more strongly on business areas and plants in which the company sees a leading market position and a clear path to long-term value creation.
„Strengthening the overall performance of the plant network“
Greif intends to supply customers who have previously sourced uncoated recycled paperboard from Sweetwater through its North American network of URB mills in future.
„We make conscious decisions about the areas in which we operate and where we invest,“ says Gaylord Benner, Senior Vice President and General Manager Sustainable Fiber Solutions at Greif. „The closure of Sweetwater will strengthen the overall performance of our mill network. At the same time, with our investments in our URB network, we are directing capital specifically into facilities that are well positioned to serve our customers and support profitable growth.“
Around 90 employees are affected by the factory closure. Greif announced severance packages and support with the career transition.
Source: Griffin
