Packaging manufacturer Sonoco Products Co. announced Monday that it will cut about 340 salaried jobs, including 130 positions at its Hartsville, S.C., headquarters, and close 20 plants worldwide in order to save $60 million annually. Sonoco supplies grease cartridges and composite motor oil containers to the lubricants industry.
Although the company has not disclosed which plants are slated for closing, Robert Cutler, sales manager for petroleum products, told Lube Report, We dont anticipate [the closings] will affect our ability to supply the petroleum industry. The purpose of the cost reduction actions is to stay price and cost competitive.
Most of the job cuts will occur by the end of the year and are expected to produce annual savings of about $31 million before tax.
Closing 20 plants globally is expected toan additional$29 millionannually. From 2001 through June 2003, Sonoco has closed 18 plants around the world.
For the last three and one-half years, Sonoco, along with most of the U.S. manufacturing sector, has been operating under difficult economic conditions, said Harris E. DeLoach Jr., president and CEO. To meet our long-term growth objectives, we must also ensure that we maintain the lowest cost structure.