Consumables

Caraustar Announces Consolidation of its Two Saginaw Tube Converting Operations Into New Facility

Friday 14. November 2008 - Caraustar Industries, Inc. (NASDAQ:CSAR), a major supplier of recycled paperboard products in North America, today announced the consolidation of its two operations in Saginaw, Michigan into one new facility located at 3265 Commerce Centre.

The two older facilities were turn-of-the-century, multi-storied buildings and were not designed for efficient manufacturing operations. The new facility provides more streamlined operations while reducing work in process and materials handling costs.

The consolidation continues Caraustar’s cost reduction strategy in geographic markets while ensuring long-term sustainability and competitiveness. The new facility allows for better and more efficient layout of machinery and processes. As a result, Caraustar will dispose of redundant assets, eliminate certain annual fixed costs, improve productivity, reduce direct labor costs and increase its ability to focus on new product development.

Paul Curtis, vice president and regional manager, stated, “This move is a significant commitment to our Saginaw operations, customers and employees. It positions the operation to continue to be the first choice provider of tubes to the automotive industry. This consolidation will improve productivity while reducing manufacturing costs; which are necessary in today’s competitive environment.”