Greif, Inc., Closes on Four Transactions
October 31 2008 - 4:05PM
PR Newswire (US)
Restructures U.S. Container Operations Network; Divests North
America Steel Pail Business DELAWARE, Ohio, Oct. 31
/PRNewswire-FirstCall/ -- Greif, Inc. (NYSE:GEFNYSE:GEF.B)
announced today that it has completed four transactions in its
North America packaging business. The company is exiting three box
plants. The assets of its Toledo, Ohio, plant are being sold to
Welch Packaging, and the sheet plant business and assets in
Roseville, Mich., are being sold to Aero Box LLC. The business of
the facility in Louisville, Ky., will be absorbed into Greif's
regional network, and the plant will be subsequently closed.
Together, the plants employ 142. Greif has also sold the assets of
its steel pail business in Greenville, Ohio, to Cleveland Steel
Container Corporation. Greif will cease production in Greenville on
Dec. 19. The plant employs 54. Mike Patton, president of Greif
Packaging LLC, said, "In line with our business strategy, we have
been in the process of fixing, selling or closing operations that
do not perform to expectations. For some time, we have been
exploring every avenue to make our underperforming container plants
profitable. Despite the best efforts of everyone involved, some
operations cannot be fixed because a critical mass of customers has
left the region. Our remaining box plant network is more than
capable of meeting our customers' needs, and we remain committed to
them. "We are exiting the steel pail business in North America
because it doesn't fit with our core business here. Our pail
customers can be better served by a larger supplier to the market."
Patton noted that the company initiated these actions before the
recent global economic events. Terms of the sales were not
disclosed. The restructuring charges for these transactions will be
recognized in the company's fourth fiscal quarter and are not
material. About Greif Greif is a world leader in industrial
packaging products and services. The company produces steel,
plastic, fibre, corrugated and multiwall containers, protective
packaging and containerboard, and provides blending, filling and
packaging services for a wide range of industries. Greif also
manages timber properties in North America. The Company is
strategically positioned in 48 countries to serve global as well as
regional customers. In 2007, the company reported $3.3 billion in
net sales. Additional information is on the Company's website at
http://www.greif.com/. DATASOURCE: Greif, Inc. CONTACT: Deb
Strohmaier, APR, Vice President, Communications of Greif, Inc.,
+1-740-549-6074, +1-614-208-3496 (cell), Web site:
http://www.greif.com/
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