March 19, 2009 (FinancialWire) -- Caraustar Industries, Inc. (NASDAQ: CSAR) (Current Market Cap: US$2.56 Mil.) has ceased production of uncoated recycled boxboard at its Carolina Paperboard mill in Charlotte, North Carolina. The closure will affect around 111 salaried and hourly employees.

In December the company said it would be idling mill. The mill had an annual capacity of around 62,000 tons.

Caraustar will record a pre-tax charge of around $9.7 million in conncection with the closure, of which $7.3 million will be non-cash. The company said it expects that the rationalization of the facility will generate $11.4 million in annual pre-tax savings.

The company said it will provide a comprehensive program of separation compensation, benefits coverage and job assistance to the employees affected by the closure to facilitate their transition to alternate employment.

Atlanta-based Caraustar Industries is an integrated manufacturer of 100% recycled paperboard and converted paperboard products.

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