Sonoco to close Montreal paperboard mill

-- Converting Magazine, 7/14/2008

Diversified packaging converter Sonoco (www.sonoco.com) will permanently close its Montreal, Quebec, Canada, uncoated recycled paperboard mill on Aug. 27.

The mill has the capacity to produce 48,000 tons/yr of primarily heavy-weight coreboard that has been principally used for Sonoco’s internal converting operations. The closure will impact 53 employees.

“The Montreal mill has had a good operating history with excellent employees, and we regret that this decision is necessary,” says James Harrell, division vp/gm, Paper North America. “However, a significant downturn in the Canadian paper industry has resulted in a decline in demand for cores and subsequently in coreboard. In addition, escalating energy, transportation and chemical costs have further impacted the profitability of the mill making it impractical to run at less than full capacity.”