Fort James to Close Folding Carton Plant

In an effort to improve efficiencies, reduce costs and optimize capacity within its Packaging Business, Fort James Corp. announced yesterday it will close its packaging plant in Chambersburg, PA, beginning on or around June 1, 1999. This decision came after a thorough study of the company's current and anticipated production needs in the competitive folding carton industry. The Chambersburg plant, which manufactures folding cartons used to package nationally marketed consumer products, will close on or about Nov. 1, 1999.

Fort James will consolidate the production capacity in Chambersburg to other packaging facilities in its system. Some of the production equipment will be moved to other facilities within the company.

The plant employs approximately 140 people. Fort James will work with the appropriate local officials, as well as state and federal agencies, to help identify job opportunities and other assistance to employees that may be available. "Fort James is committed to treating its employees fairly and equitably," said Greg Stroh, president of the Packaging Business. "We plan to assist affected employees through a variety of support programs during this difficult time."

Fort James, a leading international consumer products company, produces folding cartons for packaging food and pharmaceuticals and communication papers such as printing, publishing and office copy paper. With annual sales of $7.3 billion, the company has approximately 28,000 employees and more than 60 manufacturing facilities in the United States and 15 other countries around the world.