MeadWestvaco reduces sheeting production
at its Luke, Maryland, paper manufacturing facility next year, with
a loss of around 150 jobs. The company also announced plans to
expand sheeting capacity at its Chillicothe, Ohio, operations.
MeadWestvaco will next year permanently shut down eight sheeting machines used to convert rolls of paper into sheets at its Luke, Maryland, paper manufacturing facility. The company also announced plans to expand sheeting capacity at its Chillicothe, Ohio, operations.
"Consolidating MeadWestvaco's sheeting operations is consistent with our merger integration objectives - to provide excellent customer service with controlled costs and increased efficiency," said Ian Millar, president of MeadWestvaco Papers Group.
Shutting down the eight paper sheeting machines at the Luke mill will eliminate approximately 150 positions there. The Luke mill will continue to perform a limited amount of sheeting, said MeadWestvaco.
MeadWestvaco will incur an incremental pre-tax charge of approximately $6 million (€6.1m) that is expected to be recorded over the next year, starting in the fourth quarter of 2002. The charge is associated with employee restructuring payments, acceleration of depreciation, and other closure-related expenses.
The company also announced plans to install a new sheeting machine in its Chillicothe converting centre. This and other changes at Chillicothe are expected to require the addition of approximately 50 employees.
MeadWestvaco's Papers Group produces labels for food and beverages. The group has annual sales of $8 billion.
