Another batch of packaging giants announce shutdowns and layoffs
Economic activity in the U.S. manufacturing sector contracted for the eighth consecutive month in November as companies continued to lay off workers, according to the Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) report released on Monday.Among them, the situation in the paper and plastic products industry is particularly severe.However, it is worth noting that the ISM's index reading rose from 46.5 per cent in October to 48.4 per cent.
Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that despite the generally bullish market sentiment following the US election, actual production conditions did not improve with it."Instead, production levels fell for the fourth consecutive month in November, with the rate of decline reaching a new low in nearly a year and a half.If we exclude the epidemic, we find that the gap between expected future output and actual output is now at its largest in a decade.This suggests that the current dire production situation contrasts with market optimism about the future."
Williamson explained in the S&P Global U.S. Manufacturing PMI report released on Monday."Producers will only aggressively increase production if demand conditions improve with confidence."
Recently, some companies in the U.S. packaging industry disclosed manufacturing plant closures, layoffs and related updates in November, as follows:
International Paper sent a notice to the Tennessee Department of Labour on 13 November announcing permanent layoffs between 1 and 3 January 2025 at two of its Memphis, Tennessee, facilities.The total number of affected employees is 297.The specific addresses involved in this layoff are 3232 Players Club Drive and 400 Poplar Avenue, Memphis, Tennessee.The Company has notified the State Department of Labour on 8 November 2024 of this news.
Since the employees at this facility are not represented by a union, there is no right of recall.At this time, the Greater Memphis Area Workforce Development Board has activated its Rapid Response Mechanism and will be actively coordinating to provide employment services to affected employees.A detailed description of the previously announced workforce reduction plan for the Memphis, Tennessee headquarters.297 employees are expected to be laid off from 1 to 3 January next year.
The announcement comes on the heels of International Paper first announcing that it will cut 650 jobs worldwide, including 400 at its Memphis headquarters, or about 19 per cent of its local workforce.This was followed by an announcement that it would close several mills in Illinois, Missouri, North Carolina and Tennessee, resulting in hundreds of job losses.
According to a notice issued by the state of Tennessee, a cardboard box plant in Cleveland, near Chattanooga, will close permanently, affecting 115 workers.And a carton plant in Statesville, North Carolina, will face the same fate, with 74 employees losing their jobs.The company will also close a packaging plant in the Kansas City, Missouri, area and lay off 150 workers.In addition, another packaging plant in Rockford, Illinois, is also scheduled to close, the exact number of layoffs has not yet been announced.
In late October, International Paper announced a strategic assessment of its global cellulose fibre (GCF) business.As part of the assessment, the company decided to close its Georgetown, South Carolina, mill.The mill produces high-quality absorbent pulp, often referred to as "fluff pulp," which is used in a wide range of applications such as baby nappies, incontinence pads and feminine hygiene products.In addition, the plant produces speciality pulp, which is used as a raw material in the textile and construction materials industries.
Anchor Glass announced that it will close its Jacksonville, Florida, plant in late February, a decision that will affect 144 employees.The plant has long supplied millions of glass bottles to the nearby Anheuser-Busch brewery, according to the Florida Times Union.A Tampa-based manufacturer of glass containers, Anchor Glass has six manufacturing locations in Florida.
In a filing with the state, the company said it had to make the difficult decision to close the plant due to changing business needs.The company sent a notice to its employees on 18 November that the layoffs would be carried out in a phased manner between 17 January and 30 April.Due to the gradual contraction of the business, the company, for its part, felt that there was no applicable right to stop work.
Ardagh Glass has decided to permanently close its glass manufacturing facility in Seattle, which serves the wine industry.According to a notice filed by the state of Washington, the plant, which had previously reduced production, began laying off 245 employees one by one as of 7 November.The company said the recent "disappointing" ruling by the U.S. International Trade Commission on imports of Chinese glass wine bottles had further exacerbated its operational difficulties.
BVPV Styrenics announced in November that it would be closing its Monaca, Pennsylvania, plant and laying off 140 employees as of 3 January next year.The Pittsburgh-area plant has been operated by EPS manufacturer Styropek since it was acquired by the latter in 2020, according to CBS News.The plant produces Styrofoam bead pellets used to make products such as cups and takeout lunch boxes.The Pittsburgh Post-Gazette reported on 18 November that Styropek is now in the process of selling the plant.
Aurora Packaging Solutions, whose brand is Manufactured Packaging, will permanently close its plant in Brea, California, on 13 January next year.The layoffs will affect 60 employees, according to a notice sent to the state of California on 21 November.
Reyes Coca-Cola Bottling Company, a Coca-Cola bottler and distributor on the West Coast and in the Midwest, will permanently close its plant in Modesto, California, effective 10 January next year.The layoffs will affect 101 employees, according to a notice filed with the state on 8 November.
According to a notice filed with the state by Dart Industries on 1 November, Tupperware, the famous plastic food container brand (a registered trademark of Dart Industries and a subsidiary of Tupperware Brand Enterprises), will cease operations at its headquarters in Orlando, Florida.This means that around 145 employees will face job losses from 31 December.
In September this year, Tupperware Brands Enterprises filed for Chapter 11 bankruptcy protection and in October agreed in principle to sell it to a group of creditors.In a notice filed with the government, the company said it expects its assets to be acquired.However, the company also admitted that it is unclear whether the new acquirer will continue to employ the original staff.
In Europe, UPM announced that it has completed negotiations to restructure the operating unit of its Finnish fibre business.Based on the outcome of the negotiations, the Company will cut up to 88 positions.In addition, the Company and employee representatives have also agreed to implement temporary layoffs in the first half of 2025 in the UPM Pulp and UPM Wood businesses.These temporary layoffs may be phased in and will last for a maximum of 90 days.The negotiations, which were initiated in October, involve approximately 1,600 employees across UPM's three business units in Finland, Pulp, Timber and Forestry.UPM says the move is aimed at improving corporate efficiency and ensuring the profitability of its Finnish operations.