Paperboard packaging supplier PaperWorks Industries will consolidate all of its Canadian folding carton production into its manufacturing facility in Kitchener, Ontario.
The company expects to consolidate all production at the recently acquired Kitchener facility by next May, and close its facility in Hamilton, Ontario, by next July.
PaperWorks Industries president and CEO Kevin Kwilinski said: "Because the Hamilton facility is only 75km away from the Kitchener manufacturing plant, it made sense from a production and asset utilisation perspective to consolidate production under one roof.
"The Kitchener plant is more modern and has newer equipment, which translates into more efficient output."
Two months ago, PaperWorks had announced a strategic investment of more than $11m over the next year to bolster the Kitchener facility’s production capacity.
This facility was one of the manufacturing sites that PaperWorks purchased from CanAmPac in July.
The company stated that the coated recycled board producer Strathcona Paper, which was also part of that acquisition, continues to be part of PaperWorks’ long-term strategy and is not affected by the consolidation move.
Known for offset litho-printed folding carton design and production capabilities, the 340,000ft² Kitchener facility manufactures folding cartons for a variety of products, including dry and frozen food, beverage, pharmaceutical, household goods, personal care and institutional foodservice in Canada and the northern part of the US.
The company expects to provide employment opportunities at Kitchener to more than 50% of Hamilton’s 180 workers.
The Hamilton plant has been producing folding cartons for several years and formed part of the Rosmar Packaging Corp, which was acquired by PaperWorks in 2011.