The closure, slated for December, will be the company’s ninth since the footprint optimization that launched when Smurfit Kappa acquired Westrock in 2024. Smurfit Westrock plans to permanently close a corrugated sheet and box facility in California, and 141 employees will be affected, according to a company worker adjustment and retraining notification letter the state shared with Packaging Dive. The plant in City of Industry, California, is expected to close on Dec. 14, according to the WARN letter. All employees will be terminated at that time, and there are no bumping rights. The hourly employees are represented by the District Council 2 union. CEO Tony Smurfit referenced the closure during the company’s third-quarter earnings call on Oct. 29. He noted it was one of nine the company has undertaken since Smurfit Kappa acquired WestRock in July 2024 as part of footprint and headcount optimization efforts. The company will continue “closing down inefficient or loss-making operations, including the recently announced closure of a corrugated facility in California,” he said.

Fiscal Second Quarter 2024 Financial Highlights: *Net income decreased 60.1% to $44.4 million or $0.77 per diluted Class A share compared to net income of $111.2 million or $1.90 per diluted Class A share. Net income, excluding the impact of adjustments(1), decreased 53.9% to $47.9 million or $0.82 per diluted Class A share compared to net income, excluding the impact of adjustments, of $103.8 million or $1.77 per diluted Class A share. *Net cash provided by operating activities decreased by $123.3 million to $87.5 million. Adjusted free cash flow(3) decreased by $126.5 million to a source of $59.0 million. *Total debt of $2,916.1 million increased by $626.9 million, primarily to fund the acquisition of Ipackchem. Net debt(4) increased by $589.4 million to $2,720.1 million. Our leverage ratio(5) increased to 3.44x from 2.53x sequentially, and increased from 2.25x in the prior year quarter.

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