Greif to Close URB Mill in Fitchburg, MA; Cease Production on A1 Containerboard Machine in Austell, GA

Closure of the Number 1 Paperboard Machine (A1) in Austell, Georgia will reduce Greif's URB capacity by 90,000 tons.

Jan. 29, 2025 - Greif announced that it will permanently close the containerboard and uncoated recycled paperboard (URB) mill in Fitchburg, Massachusetts, and permanently cease production on the Number 1 Paperboard Machine (A1) in Austell, Georgia.

"Decisions like these are extremely difficult because of the impact it has on our colleagues and their families, as well as the larger community," said President and CEO Ole Rosgaard. "We are grateful to our colleagues in Austell and Fitchburg for their contributions to the company and are committed to helping them navigate next steps by providing severance benefits and outplacement assistance."

In total, approximately 140 positions will be impacted. Ceasing production at A1 — a non-integrated URB asset for the company — is a result of increased cost and declining demand in its major end use markets of furniture, books, and binders. The combination of high operating costs and the need for significant capital investment were the determining factors in the decision to close the Fitchburg mill. Together, these actions will reduce the containerboard capacity of Greif's mill network by 100,000 tons, and URB capacity by 90,000 tons.

"We believe strongly in the fundamentals of our business. These strategic actions will refine our participation in the market and help us maximize the profitability of our mill network and our overall business portfolio" said Rosgaard.

The company expects to cease production on the A1 asset by the end of March 2025 and Fitchburg by May 2025.

Greif (NYSE: GEF, GEF.B) is a global leader in industrial packaging products, producing steel, plastic and fiber drums, intermediate bulk containers, reconditioned containers, jerrycans and other small plastics, containerboard, corrugated sheets and products, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products.

SOURCE: Greif