Another 220 North Escambia Area Jobs Being Cut

February 12, 2009

Another 220  jobs in the North Escambia area will be gone by the end of September, with the first employees getting their pink slip in 60 days.

Graphic Packaging says they are closing four U.S. facilities, including their multi-wall bag packaging facility in Cantonment, by September 30. Graphic Packaging employees about 220 people at the their Cantonment facility.

The first layoffs will come by April, with more senior staff remaining at the facility until the final day in September.

“We are continuing to push aggressively in 2009 to integrate assets and streamline operations, as well as achieve a minimum of $90 million in synergy savings expected from our combination,” said

David W. Scheible, president and chief executive officer of the company.In March 2008, Graphics Packaging merged with Altivity Packaging. The Cantonment facility was previously operated by Smurfit-Stone as Stone Container.Employees have been told that no concrete decision has been made on offering employee transfers to other facilities. The Cantonment production equipment is to be moved to a facility in  Georgia.Non-union employees will be offered some level of assistance, and the company will work with the United Steelworkers union on any assistance for their union employees, a company official said.Graphic Packaging is expected to announce its fourth quarter financial results on February 27. The company previously announced the closure of a Tennessee  carton plant, and this week announced the closure of plants in Tuscaloosa, Ala.;  Morris, Ill.; and Muncie, Ind.

The company lost $42 million on $3.03 billion in sales during the first nine months of 2008.

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Written by William Reynolds · Filed Under News