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Sonoco To Shutter Ohio Mill

March 18, 2009 (FinancialWire) -- Sonoco (NYSE: SON) said that it will permanently close its Lancaster, Ohio, uncoated recycled paperboard mill, effective May 16. The plant closure will impact 58 employees.

The mill has the capacity to annually produce around 56,000 tons of paperboard, which has been used primarily to supply the company's industrial products converting operations.

Company executive James Harrell said, "The economic recession has continued to weaken demand for uncoated recycled paperboard in North America which is forcing us to take additional steps to align our production capacity to match changing market realities."

Sonoco said will offer severance pay, benefits continuation and outplacement assistance to employees.

Hartsville, South Carolina-based Sonoco is a global manufacturer of industrial and consumer products and provider of packaging services, with more than 300 operations in 35 countries serving customers in 85 nations.

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