PaperWorks Industries, Inc. will be consolidating all of its Canadian folding carton production into its recently-acquired manufacturing facility in Kitchener, Ontario, Canada. The company expects to consolidate all production at Kitchener by May 2016, and close its Hamilton, Ontario plant by July 2016.
"Because the Hamilton facility is only 75 kilometers away from the Kitchener manufacturing plant, it made sense from a production and asset utilization perspective to consolidate production under one roof. The Kitchener plant is more modern and has newer equipment, which translates into more efficient output," said Kevin Kwilinski, president and CEO.
In August, PaperWorks announced a strategic investment of more than C$11 million ($9 million) over the next year to expand the capabilities of the Kitchener facility. The plant was one of the manufacturing locations acquired from CanAmPac in July. Coated recycled board producer Strathcona Paper, also part of that acquisition, continues to be part of PaperWorks' long-term strategy and is not affected by any consolidation initiatives.
The 340,000 square foot Kitchener facility is known for its high-quality, offset litho-printed folding carton design and production capabilities. The facility manufactures folding cartons for a variety of products including dry and frozen food, beverage, pharmaceutical, household goods, personal care and institutional foodservice. It services brand owner supply needs in Canada and the northern part of the United States.
One of the reasons PaperWorks has elected to make the announcement nine months in advance of the plant shutdown, is to give Hamilton employees the opportunity to apply for positions at the expanding Kitchener location. The company envisions offering employment opportunities at Kitchener to more than 50% of Hamilton's 180 workers.
The Hamilton plant has been producing folding cartons for many decades and was part of the Rosmar Packaging Corp. acquisition that PaperWorks made in 2011.
PaperWorks Industries, Inc. is a leading, integrated North American full-service packaging provider of recycled paperboard and specialized folding cartons.