Sonoco Products Co.
) has announced plans to close the Carrickmacross facility.
Changing market conditions, a difficult financial state and stiff
competition forced the company to make this decision.
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The Carrickmacross plant, which manufactures thermoformed
packages for Ireland and other parts of Europe, will close down
on Nov 1, 2013. Sonoco's decision is based on volume loss and
weak profits, experienced by the plant over the past several
years, which will continue in 2013 as well.
Sonoco will consult with the workforce of the plant regarding the
shut down of operations to find ways to avoid repercussions. The
closure is expected to put 49 jobs at risk. But Sonoco is
committed to find alternatives to redeploy the employees at other
operations. The company also has options of retirement and
voluntary redundancy under conisderation.
The company is chalking out plans for a smooth closure with
minimal disruption to the plant's quality and service. Sonoco
does not expect the job reduction to occur until Oct 2013.
Carrickmacross operations are expected to continue at their
normal pace up to that time and gradually slowdown thereafter.
Sonoco's first quarter results were disappointing as revenues
fell 3% year over year to $1.179 billion and adjusted earnings
per share decreased 4% to 50 cents primarily due to lower volume
and selling prices in the Consumer Packaging and Paper and
Industrial Converted Products segments, partially offset by
volume improvement and sales price gains in the Display and
Packaging and Protective Solutions segments.
Sonoco Products, which is a global manufacturer of consumer and
industrial packaging products along with
Bemis Company, Inc
Berry Plastics Group, Inc.
), expects to increase sales to $5.5 billion to $6 billion over
the next three to four years. However, slow recovery in the U.S.
and the ongoing European weakness are headwinds to the company.
South Carolina-based Sonoco is a global provider of a variety of
consumer packaging, industrial products, protective packaging and
packaging supply chain services. Sonoco is also the largest
producer of paper-based tubes and cores in North America.
Sonoco Products currently retains a short-term Zacks Rank #3