Paperboard capacity reduction at Caraustar

ATLANTA—Caraustar Industries, Inc. announced the permanent closure of its Richmond Paperboard mill in Richmond, Virginia, effective December 11, 2008. The Richmond mill is an uncoated recycled boxboard (URB) manufacturing facility with annual capacity of 49 thousand tons. Associated with this mill closure, the company will record a pre-tax charge of approximately $5.9 million, of which approximately $4.7 million will be non-cash. This rationalization is expected to generate an estimated $5.1 million in annual pre-tax savings. The closure of the Richmond mill will affect approximately 52 salaried and hourly employees. Caraustar will provide a comprehensive program of separation pay, benefits coverage and job assistance to the employees affected by the Richmond closure to facilitate their transition to alternate employment.