AM I NEXT? NO LOVE AT WESTROCK (09/21/23)

Am I Next? WestRock closes North Carolina plant with 170 layoffs.

SEPTEMBER 21, 2023 — FRIDLEY, MINNESOTA PLANT TO CLOSE WITH 70 LAYOFFS.

The company has announced the layoffs of 70 employees at its Fridley, Minnesota plant. Layoffs will begin November 13, 2023, and continue until the facility permanently closes its doors.

AUGUST 27, 2023 — TACOMA, WASHINGTON MILL SHUT DOWN WITH 400 EMPLOYEE LAYOFFS

WestRock announced it would “permanently cease operating its paper mill in Tacoma, Washington, and will conclude production by September 30, 2023.

400 employees are impacted.

According to a company statement…

“The combination of high operating costs and the need for significant capital investment were the determining factors in the decision to cease operations at the mill.”

“WestRock is working to optimize our operational footprint and consolidate production in order to improve our return on invested capital, and we have made the difficult decision to close the Tacoma mill as part of this effort.”

“One of the most critical factors we consider when making the difficult decision to close a facility is the impact it will have on the lives of our team members, and we are committed to assisting our Tacoma team with exploring roles at other WestRock locations and nearby companies as well as providing outplacement assistance.”

OCTOBER 6, 2022 — PLANT CLOSURE IN ST. PAUL, MINNESOTA

The company announced that it will permanently close the corrugated cardboard manufacturing operations at its St. Paul, Minnesota, recycled paper mill.

The closure will impact approximately 130 employees.

According to a company statement…

“The production of coated recycled board at this location will remain in operation.

WestRock is committed to improving its return on invested capital as well as maximizing the performance of its assets, and the corrugated medium machinery at the St. Paul location would require significant capital investment to maintain and improve going forward. The shutdown of these assets will result in the reduction of 200,000 tons of annual corrugated medium production.”

According to WestRock CEO David Sewell, “Shutting down operations and impacting the lives of our employees is a difficult decision to make. As we implement our plans to close the corrugated medium operations in St. Paul, we are incredibly appreciative for the many contributions this team has made. We plan to assist these team members in exploring roles at other WestRock locations and with outplacement services.”

APRIL 8, 2022 — PANAMA CITY, FLORIDA PLANT TO CLOSE

The company has announced it will permanently cease operations at its containerboard mill in Panama City, Florida, by June 6, 2022, and transfer operations to other company facilities.

The closure will impact 450 employees.

The decision was driven by the company’s reluctance to modernize the plant as they concentrate on more profitable containerboard products.

According to WestRock CEO David B. Sewell, “A decision to close a facility and impact the lives of our employees is never easy to make. As we implement our plans to close the Panama City mill, we do so with great appreciation for the many contributions of the team there. We are committed to assisting our Panama City team with exploring roles at other WestRock locations and outplacement assistance.”

AUGUST 28, 2018 — Original post

Norcross, Georgia-based WestRock, the nation’s second-largest manufacturer of paper and packaging products, has announced that they are optimizing their manufacturing capabilities and closing their 185,000-square-foot Charlotte, North Carolina facility; laying off 170 employees in the process.

The workload will be distributed among other WestRock facilities. As expected, a company spokesperson notes, “The decision was made from an efficiency standpoint. We have the capacity in our network that we’re able to consolidate. All employees are strongly encouraged to look at other opportunities within the network.”

In Westrock’s 2018 Third Quarter SEC filing, CEO Steve Voorhees noted “Our WestRock team delivered significant margin and cash flow improvement in the third fiscal quarter, evidence that our strategy, operational performance, and productivity efforts are delivering value for our stockholders. With our productivity performance in the quarter, we achieved our goal of a run rate of more than $1 billion of synergy and performance improvements. We are on track to achieve our financial goals for the year and are well-positioned to build on our success in fiscal 2019.”

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