In order to align its manufacturing capacity and fixed cost structure to match market conditions, Sonoco is implementing cost reduction measures which are expected to achieve approximately $28 million in annualized pre-tax savings when fully phased in through 2009, DeLoach said.

“This realignment calls for the closing of approximately 15 plants globally and the reduction of approximately 700 positions,” said Sonoco Chairman, President and Chief Executive Officer Harris E. DeLoach, Jr. “The majority of these plant closings are small in size and our focus is on reducing our global industrial products manufacturing footprint.”

DeLoach said the cost of the realignment is estimated to be approximately $29 million, of which approximately $20 million in pre-tax restructuring charges are expected to be taken against earnings in the fourth quarter of 2008. The majority of the costs involve severance and other cash costs that will be incurred through 2009.

Source: Sonoco

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