Greif to Close Los Angeles Paperboard Mill

Rhea-AI Summary

Greif (NYSE: GEF) announced the permanent closure of its Los Angeles paperboard mill as part of its optimization strategy. The facility, which will cease operations in June 2025, currently produces both coated recycled paperboard (CRB) and uncoated recycled paperboard (URB). The closure will remove 50,000 tons of CRB and 22,000 tons of URB capacity from the market, ending Greif's coated paperboard production on the West Coast. The decision will impact approximately 72 positions, with the company providing severance benefits and career transition resources to affected employees. The closure decision was attributed to increased costs and limited integration opportunities.

Positive

• Strategic optimization to enhance existing mill network performance
• Cost reduction through elimination of underperforming facility
• Providing severance benefits and career transition support to affected employees

Negative

• Loss of 72 jobs and complete exit from West Coast coated paperboard production
• Reduction of 72,000 tons total production capacity (50,000 CRB + 22,000 URB)
• Increased costs and limited integration opportunities affecting operational viability

News Market Reaction

-0.06%

1 alert

-0.06% News Effect

On the day this news was published, GEF declined 0.06%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DELAWARE, Ohio, May 01, 2025 (GLOBE NEWSWIRE) -- Greif (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today it will permanently close the paperboard mill in Los Angeles, California as part of its previously announced optimization efforts. The Los Angeles mill is expected to cease operation in June 2025.

The mill, which produces both coated recycled paperboard (CRB) and uncoated recycled paperboard (URB) is expected to remove 50,000 tons of CRB and 22,000 tons of URB capacity from the market and will end Greif’s coated paperboard production on the West Coast.

“Closing this facility was not an easy decision, especially knowing the effect it has on our team members, their families, and the surrounding community,” said President and CEO Ole Rosgaard. “I want to sincerely thank our Los Angeles colleagues for their hard work and commitment over the years. As we move forward, our focus is on providing meaningful support, including severance benefits and career transition resources, to help them through this change.”

In total, approximately 72 positions will be impacted. Closing the Los Angeles Mill is a result of increased costs and limited integration opportunities.

“We remain confident in the strength of our business and its long-term potential. This is a strategic decision intended to strengthen our focus in key markets while enhancing the performance of both our existing mill network and broader business portfolio,” said Rosgaard.

About Greif

Greif is a global leader in industrial packaging products and services and is pursuing its vision: being the best customer service company in the world. The Company produces 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. The Company also manufactures packaging accessories and provides other services for a wide range of industries. In addition, Greif manages timber properties in the southeastern United States. The Company has a workforce of over 14,000 colleagues spread across more than 250 facilities in 37 countries to serve global as well as regional customers. Additional information is on the Company's website at www.greif.com.

Media Contact

TJ Struhs
Director, Corporate Communications
tj.struhs@greif.com | +1 (207) 956-2304

FAQ

When will Greif (GEF) close its Los Angeles paperboard mill?

Greif will cease operations at its Los Angeles paperboard mill in June 2025.

How many employees will be affected by Greif's Los Angeles mill closure?

The closure will impact approximately 72 positions at Greif's Los Angeles facility.

What is the production capacity being removed from Greif's Los Angeles mill closure?

The closure will remove 50,000 tons of coated recycled paperboard (CRB) and 22,000 tons of uncoated recycled paperboard (URB) capacity.

Why is Greif (GEF) closing its Los Angeles paperboard mill?

Greif is closing the mill due to increased costs and limited integration opportunities, as part of its optimization strategy to strengthen focus in key markets.

What support is Greif providing to employees affected by the Los Angeles mill closure?

Greif is providing severance benefits and career transition resources to help affected employees through the transition.