Caraustar Ceases Production of Uncoated Recycled Boxboard at Chattanooga Mill

Approximately 67 salaried and hourly employees are affected by the mill closure. Caraustar will provide a comprehensive program of separation pay, benefits continuation and job assistance to these employees.

Associated with the cessation of paperboard production in Chattanooga, the company will record a pre-tax charge of approximately $7.9 million, of which approximately $5.8 million will be non-cash. This rationalization is expected to generate an estimated $9.0 million in annual pre-tax savings.