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Greif to Close Los Angeles Paperboard Mill

1. Greif will close its Los Angeles paperboard mill in June 2025. 2. This closure removes 72 jobs and impacts 50,000 tons of CRB capacity. 3. The decision aims to enhance Greif's focus on key markets and performance. 4. Increased costs and limited integration led to mill closure decision. 5. Greif remains confident in its long-term business potential despite the closure.

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Why Bearish?

The closure reflects increased operational costs and operational streamlining, which suggests potential difficulties in maintaining market share. Historically, plant closures often signal declining performance or strategic retreat, impacting stock prices negatively.

How important is it?

The article outlines significant operational changes that could affect Greif's market dynamics and operational performance, hence influencing investor perceptions and stock valuation.

Why Short Term?

The immediate impact is seen in the job loss and operational scaling back, which may affect investor sentiment short-term until the benefits of optimization manifest.

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WRKPKGSON
May 01, 2025 08:00 ET  | Source: Greif, Inc. DELAWARE, Ohio, May 01, 2025 (GLOBE NEWSWIRE) -- Greif (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today it will permanently close the paperboard mill in Los Angeles, California as part of its previously announced optimization efforts. The Los Angeles mill is expected to cease operation in June 2025. The mill, which produces both coated recycled paperboard (CRB) and uncoated recycled paperboard (URB) is expected to remove 50,000 tons of CRB and 22,000 tons of URB capacity from the market and will end Greif’s coated paperboard production on the West Coast. “Closing this facility was not an easy decision, especially knowing the effect it has on our team members, their families, and the surrounding community,” said President and CEO Ole Rosgaard. “I want to sincerely thank our Los Angeles colleagues for their hard work and commitment over the years. As we move forward, our focus is on providing meaningful support, including severance benefits and career transition resources, to help them through this change.” In total, approximately 72 positions will be impacted. Closing the Los Angeles Mill is a result of increased costs and limited integration opportunities. “We remain confident in the strength of our business and its long-term potential. This is a strategic decision intended to strengthen our focus in key markets while enhancing the performance of both our existing mill network and broader business portfolio,” said Rosgaard. About Greif Greif is a global leader in industrial packaging products and services and is pursuing its vision: being the best customer service company in the world. The Company produces steel, plastic and fiber drums, intermediate bulk containers, reconditioned containers, jerrycans and other small plastics, containerboard, corrugated sheets and products, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The Company also manufactures packaging accessories and provides other services for a wide range of industries. In addition, Greif manages timber properties in the southeastern United States. The Company has a workforce of over 14,000 colleagues spread across more than 250 facilities in 37 countries to serve global as well as regional customers. Additional information is on the Company's website at www.greif.com. Media Contact TJ StruhsDirector, Corporate Communicationstj.struhs@greif.com | +1 (207) 956-2304

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