Sonoco closes US machinery operation
announced it will close its machinery manufacturing operation in
Fenton, Missouri, by the third quarter of 2002.
The US division of global packaging solutions provider Sonoco has announced it will close its machinery manufacturing operation in Fenton, Missouri, by the third quarter of 2002.
The operation, which principally manufactures machinery and tooling for the company's internal use, employs approximately 15 people. Some will be offered positions at other Sonoco locations with the remainder being provided severance pay and outplacement services. The company presently leases the facility.
Sonoco acquired the operations in Fenton in 1997. The company will integrate these functions with its machinery manufacturing operations in South Carolina.
Facing falling profit margins and rising costs Sonoco recently made an announcement that it was going to increase it prices for paper-based tubes and cores in both its US and UK markets by between 7 to 12 per cent. The move to close its machinery manufacturing operation in the US lends further credence to the drive towards budgeting measures.
Sonoco, founded in 1899, is a $2.6 billion (€2.9bn) manufacturer of industrial and consumer packaging products and a provider of packaging services, with approximately 300 locations in 32 countries, serving customers in 85 nations.
