Packaging Corporation of America is closing a facility in Georgia, affecting 103 employees, according to a filing with the state.
PCA determined it could serve customers more effectively and efficiently by moving the capacity from this full-line plant in East Point, near Atlanta, to other locations within the company’s network, according to a statement emailed by a spokesperson.
Employees’ last days at the facility will be in March, according to the worker adjustment and retraining notification filing. Normal operations will continue at the corrugated products plant during the 60-day WARN notification period, the spokesperson said. “During this time, our focus will be on customers and our employees,” said PCA’s statement.
“We understand that this is an especially challenging time for our employees and their families. The company’s decision is not a reflection of their performance,” the statement says.
PCA will assist workers with finding new employment, either within the company or at other employers in the East Point area.
Packaging Corporation of America largely hasn’t followed the recent industry trend toward fiber plant closures and layoffs. Multiple fiber companies including International Paper, Graphic Packaging International and WestRock (now Smurfit Westrock) have announced numerous facility closures over the past two years that resulted in thousands of layoffs.
PCA also is one of the few top 12 U.S. publicly traded packaging manufacturers with annual revenue greater than $5 billion whose headcount has remained relatively steady over the last decade — as opposed to others’ workforces that were more notably affected by layoffs, M&A activity or other factors.
This spring, PCA is expected to open a new box plant near Phoenix, which will replace its existing corrugated products plant there. PCA reported that it exceeded performance expectations in the third quarter of 2024 and set all-time quarterly records for containerboard production, total box shipments and shipments per day. Its next earnings call, covering Q4 and full-year 2024, is on Jan. 29.
