HARTSVILLE, S.C., Oct. 11 /PRNewswire-FirstCall/ -- Sonoco (NYSE: SON),
the global packaging company, today announced that it would initiate cost-
reduction measures primarily focused on certain of its international
operations. According to Harris E. DeLoach, Jr., Sonoco's chairman,
president and chief executive officer, these actions are expected to
achieve approximately $23 million in annual pre-tax savings when fully
phased in through the remainder of 2006 and 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991006/SNCLOGO)
The cost reduction plan calls for the closing of approximately 12 plant
locations globally and the reduction of approximately 540 positions
worldwide. No significant reductions are anticipated at the Company's
Hartsville, South Carolina, headquarters. The total cost of the
restructuring program is estimated to be approximately $35 million, the
majority of which is severance and other cash costs that will be incurred
starting in the fourth quarter of 2006 and continuing into 2007.
"The majority of our restructuring program will focus on Europe, where
Sonoco recently announced that it would acquire the remaining 35.5 percent
interest of the Sonoco-Alcore, S.a.r.l., joint venture from Ahlstrom
Corporation," said DeLoach. "These actions will better optimize Sonoco's
operations throughout Europe allowing us to achieve a low cost position in
the markets we serve."
About Sonoco
Sonoco, founded in 1899, is a $3.5 billion global manufacturer of
consumer and industrial packaging products and provider of packaging
services, with more than 300 operations in 35 countries serving customers
in some 85 nations. For more information on Sonoco, visit our Web site at
http://www.sonoco.com.
SOURCE Sonoco
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Related links:
http://www.sonoco.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19991006/SNCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Allan V. Cecil, Vice President, Sonoco,
+1-843-383-7524, or allan.cecil@sonoco.com
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