Smurfit Westrock PLC has announced significant changes to its operations, which will have a direct impact on its capacity and workforce. The company will permanently close its coated recycled board (CRB) mill in St. Paul, Minnesota, U.S., and discontinue production at its containerboard mill in Forney, Texas, U.S. These closures are expected to reduce the company’s containerboard and CRB capacity by over 500,000 tons.
Additionally, Smurfit Westrock has initiated consultations with local works councils in Germany with the intention of permanently closing two converting facilities there. These closures will affect approximately 650 employees in the U.S. and Germany.
In response to these changes, the company has committed to providing support to affected employees, including career transition assistance and relocation opportunities where possible. Impacted employees will also receive local severance in accordance with company policy, works council, and labor union agreements.
Tony Smurfit, President & Group Chief Executive Officer of Smurfit Westrock, acknowledged the difficulty of these decisions but emphasized their basis in the company's assessment of current and future capacity needs, operating costs, and a commitment to improving the business. He expressed gratitude for the contributions of the affected teams and pledged support for them throughout the transition process.
These changes demonstrate the company's strategic response to evolving market conditions and its efforts to optimize its operations for long-term sustainability. Following these announcements, the company's shares moved -0.8%, and are now trading at a price of $42.02. Check out the company's full 8-K submission here.
