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A paper packaging manufacturer is permanently closing its container plant in Elk Grove and laying off 130 employees, according to a Worker Adjustment and Retraining Notification, or WARN, notice filed with state labor officials.
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The International Paper Co. facility at 10268 Waterman Road is scheduled to begin shutting down Aug. 28. The closure is part of the company’s broader effort to streamline operations and reduce costs, which also includes closing facilities in Illinois and New Jersey and ending preprint operations at a Kentucky plant.
According to the WARN notice, released Tuesday by the Employment Development Department, some employees may be required to work temporarily after Aug. 28 to assist with decommissioning equipment and vacating the building.
The WARN notice said affected positions include lift truck operators, customer service representatives, maintenance technicians, sales representatives and shipping technicians.
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“All employees have the opportunity to apply for available positions at any other International Paper facility,” human resources manager Bettina Carte said in the notice.
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According to Zacks Equity Research, a Chicago-based investment services firm, the company is also closing plants in Illinois, New Jersey and Kentucky in order to streamline operations and refocus investments.
International Paper manufactures sustainable fiber-based packaging products, including corrugated boxes and shipping containers, according to its website. The company said it expects to transition customers served by the Elk Grove plant to other facilities in the region. Other Northern California locations include a West Sacramento recycling plant, a Tracy box plant and a Modesto container plant.
International Paper said affected employees would receive severance, benefits and outplacement assistance.
The Memphis, Tennessee-based company has been consolidating operations in recent years as it seeks to reduce costs and increase production capacity while expanding in other markets, according to analysts.
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