Smurfit WestRock PLC on Thursday announced major capacity reductions and facility closures in the US and Germany, impacting around 650 jobs globally as it adjusts operations in response to shifting demand and cost pressures.
Shares in Smurfit WestRock were up 0.6% at 3,150.00 pence in London on Thursday morning.
The Dublin-based packaging manufacturer represents the merger of Ireland-based Surfit Kappa Group PLC and US-based WestRock that took place in June.
Smurfit WestRock said it will permanently close its coated recycled board mill in St Paul, Minnesota, and discontinue production at its containerboard mill in Forney, Texas, though the specialty coating facility at Forney will remain open. These moves are expected to reduce the company‘s containerboard and coated recycled board capacity by more than 500,000 tonnes.
In Germany, Smurfit WestRock has begun consultations with local works councils regarding the potential permanent closure of two converting facilities.
‘While closing facilities is never an easy decision, it is based on a realistic expectation of current and future capacity needs, operating costs and an unrelenting focus on improving our business,’ said Chief Executive Officer Tony Smurfit.
The company said the approximately 650 employees affected by these closures will receive support including severance packages, career transition assistance and relocation opportunities where possible, in line with company policy and labour agreements.
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