Sonoco tightens belt under in response to market conditions

- Last updated on GMT

Related tags: Economics

US-based packaging company Sonoco is expecting to save $28 million by implementing further cost reduction measures.

In an attempt to match current market conditions, the South Carolina-based company has announced the closing of 15 plants around the world, and will result in the loss of 700 jobs, said Harris DeLoach, Jr., chairman, president and CEO of Sonoco.

"The majority of these plant closings are small in size and our focus is on reducing our global industrial products manufacturing footprint,"​ said DeLoach.

The majority of the costs involved, estimated to be approximately $29 million, are associated with severance and other cash costs that will be incurred through the next year.

Commenting on the overall finances of the company, DeLoach said: "Our strategy to grow businesses serving consumer markets is clearly working. For the first three quarters of 2008, our Consumer Packaging segment reported a 13 per cent increase in sales and a 29 percent increase in operating profits.”

Related topics: Manufacturers