In a move that will displace over a hundred employees, the corrugated plant in Milan, Michigan has announced it will permanently cease operations by July 6th.
Approximately 119 workers will be affected by the closure.
The company cited economic factors and concerns over the long-term competitiveness of the facility as the primary drivers behind the difficult decision. "The decision to close the plant is not a reflection of the employees' work but rather based on our ability to be competitive at this location in the long term," a company spokesperson declared.
The company has stated it is working to support impacted employees during the transition period. Opportunities both within and outside the organization are being provided to those affected. The company also expressed gratitude for the employees' dedication over the years in maintaining a safe and productive plant.
Regional Competitiveness a Factor?
According to Marcello Collares, Vice President at ResourceWise, the high density of corrugated facilities in the Michigan/Great Lakes region has created an intensely competitive environment that likely contributed to the Milan plant's closure."Michigan and its neighboring states of Wisconsin, Illinois, Indiana, Ohio, and the Canadian province of Ontario have a remarkably high concentration of corrugating operations per square mile," Collares explained. "While the cost curves for these facilities are relatively flat, indicating parity in many areas, certain plants have managed to gain a significant cost advantage."
