DEERFIELD, Ill., Feb. 15 /PRNewswire/ -- Fort James Corporation (NYSE: FJ)
announced today that it will close its packaging plant in Chambersburg, Pa.,
beginning on or around June 1, 1999.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990215/CGM010 )
This decision was made after a thorough study of the company's current and
anticipated production needs in the competitive folding carton industry. The
Chambersburg packaging plant, which manufactures folding cartons used to
package nationally marketed consumer products, will close on or about Nov. 1,
1999.
"We realize this decision is very difficult for our employees and their
families, as well as the Chambersburg community," said Greg Stroh, president
of the Packaging Business. "Our decision to discontinue operations in
Chambersburg is based on our ongoing need to improve efficiencies, reduce
costs and optimize capacity within our Packaging Business."
Fort James will consolidate the production capacity in Chambersburg to
other packaging facilities in its system.
The plant employs approximately 140 people. Salaried employees will
receive a separation package in accordance with company policy. Fort James
will work with the appropriate local officials, as well as state and federal
agencies, to help identify job opportunities and other assistance that may be
available. Severance for hourly employees represented by GCIU Local 712-S
will be determined in accordance with the terms contained within the
collective bargaining agreement or as negotiated during a process known as
"effects bargaining."
"Fort James is committed to treating its employees fairly and equitably,"
Stroh said. "We plan to assist affected employees through a variety of
support programs during this difficult time."
Fort James is a leading international consumer products company, serving
consumers both at home and away-from-home with bathroom and facial tissue,
paper towels, napkins, and cups, plates, cutlery and food wrap products. The
company's popular brands include Quilted Northern, Brawny, Dixie, Vanity Fair,
Mardi Gras, Green Forest, Soft 'n Gentle and So-Dri in North America and
Lotus, Tenderly, Colhogar and Kittensoft in Europe. Fort James also produces
folding cartons for packaging food and pharmaceuticals and communication
papers such as printing, publishing and office copy paper. With annual sales
of $7.3 billion, the company has approximately 28,000 employees and more than
60 manufacturing facilities in the U.S. and 15 other countries around the
world.
SOURCE Fort James Corporation
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Related links:
http://www.fortjames.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990215/CGM010
or NewsCom, 213-237-5431
CONTACT:
Financial, Celeste Gunter, 804-662-8307,
Media, Mark Lindley, 847-317-5280, or pager, 800-724-3624, pin
#167-3518, both of Fort James Corporation
NOTE TO EDITORS: Copies of today's news release, along with
additional information on Fort James, is available, at no charge,
by calling 888-526-3711. You may also access the company's Web
site at Internet address http://www.fortjames.com
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