The U.S. packaging and paper industry plans to close factories or stop production in June, resulting in more than 1,000 layoffs!

Release date: 2024-07-04               Source:  Global Printing and Packaging Industry

Throughout June, several U.S. packaging groups announced layoffs totaling more than 1,000 people, including giants from the U.S. packaging industry such as paper and packaging, glass and plastics.

U.S. Paper Industry Quantity Chart

Among them, the production of 100% recycled containerboard (face paper and corrugated paper) and other packaging grades of paper, with a total production capacity of about 1 million tons/year, represents a new generation of high-tech, environmentally friendly paper and packaging groups-McKinley Paper plans to close its paper mill in Port Angeles, Washington on August 25, 2024, and will lay off 193 employees. The Peninsula Daily reported, citing an email sent by the company to employees earlier this week, that the company will carry out indefinite large-scale layoffs, affecting about 193 employees.

This email is a formal notice issued under the Worker Adjustment and Retraining Notification Act. The act requires most employers with more than 100 employees to provide 60 days' notice before an upcoming layoff or plant closure. The company expects that the last day of work for most affected employees will be August 24, 2024, the end of the 60-day WARN notice period.

According to the June 19 WARN notice, Westrock is closing a plant in Corona, California. Starting August 18, 77 employees will be laid off. According to Westrock's website, the location is a printing and processing base.

The company said that based on the information currently available, they hope that the plant will resume operations at some point in the future, but cannot determine the specific time. The letter was reportedly sent to employees on Tuesday afternoon and posted on social media shortly afterwards. The letter mentioned that employees who leave before August 24 will receive full wages and benefits for a full 60 days. Employees who choose to leave the company will not be entitled to wages or benefits after the last day of work, even if they are assigned work.

According to local sources, Kimberly-Clark has announced plans to close its tissue factory in Flintshire by 2025, which will put more than 200 jobs at risk. The decision was made after the UK government banned the sale of plastic wipes. Despite Kimberly-Clark's efforts to reduce plastic in its products, it will not be completed before mid-2026, so it cannot continue to operate the factory. The company is in consultation on the closure of the factory and prioritizes supporting affected employees during this challenging period. If approved, the Flint plant will continue to operate until 2025 while developing a transition plan with customers and retailers.

In addition to the huge challenges facing the paper industry, other glass products industries will also face a trend of layoffs. Now the international import and export industry has also suffered a significant impact on shipping costs, resulting in a reduction in imports and exports everywhere. We also need to find ways to work together to overcome this difficulty and usher in a good future.