MeadWestvaco Closes Envelope Plant
Paper producer MeadWestvaco said yesterday it would close an envelope plant in Worcester, MA, that is part of its consumer and office products division within 60 days as part of a cost-cutting effort.The closing will affect 150 employees, who will be offered job-placement assistance. MeadWestvaco said it would close the plant in late September and transfer its production to other company facilities.
The company projected that it will incur an $11 million charge for costs, including employee restructuring benefits and asset write-downs, related to the closure. MeadWestvaco said it expected the closure to boost future earnings.
MeadWestvaco, Stamford, CT, plans to close another consumer and office products facility in Front Royal, VA, in mid-August, affecting 160 employees. In May, the company shut down four paper machines, three in Chillicothe, OH, and one in Luke, MD, leading to the layoff of 425 workers.
The company is slashing 900 jobs in 2002 as a result of the merger of Mead Co. and Westvaco, which was completed Jan. 29.
