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Sonoco plant is closing; 78 employees affected

By Matt Sanctis

Staff Writer

Wednesday, August 13, 2008

St. Paris, Ohio — About 78 local workers will have to find new jobs in December following an announcement this week that the Rigid Paper Packaging plant in St. Paris will be closing.

Sonoco, a packaging company based in Hartsville, S.C., announced that the plant at 702 E. Main St. in December and transferring operations to other facilities.

St. Paris Mayor Joe Braden said the decision will have an impact on the city, not only because of a loss in tax revenue, but also because of the economic impact its employees had on the village. He said he was informed of the decision Wednesday.

"It's going to affect our community quite a lot," Braden said. "It's one of the largest employers in St. Paris."

Sonoco purchased the facility in 2007 from Caraustar Industries, Inc. The plant makes composite cans and metal ends and closures, often used to package everything from peanuts and coffee to infant formula and powdered drink mixes, It employs about 78 workers, most of whom are full-time, hourly workers, said Robin Montgomery, a company spokesman, adding that the company is working on severance packages, as well as working with state officials to help place employees.

When Sonoco purchased the plant a year ago, it seemed to be a good strategic move, but the downturn in the economy over the past year and rising costs forced the closure, said Montgomery, adding that the company is working on severance packages, as well as working with state officials to help place employees.

"Closing a plant is always difficult because of the impact on employees," said Howard Coker, division vice president and general manager for Rigid Paper and Closures. "However, it is necessary to ensure that the company can remain a low-cost competitor. Sonoco has adequate capacity to absorb the volume from the St. Paris plant."

Braden said the village has plans to talk to company and county officials. Otherwise, there may not have a lot of options to help workers. The village, he said, will be looking for another employer who may be interested in taking over that space.

Contact this reporter at (937) 328-0355 or msanctis@coxohio.com.

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