Industrial packaging company Greif has confirmed plans to permanently close its steel and polymer drum manufacturing facility located in Merced, California, US.

This decision is part of the company's strategy to optimise operations and is expected to take effect in September this year.

The Merced facility is responsible for the production of steel drums, as well as large and small polymer containers.

Following the closure, customer orders will be managed through Greif's existing global network of steel and polymer production sites.

The closure will affect approximately 43 employees at the facility.

Greif president and CEO Ole Rosgaard said: “I want to express my deep gratitude to our colleagues in Merced for their hard work over the years and the positive impact they’ve had on the company and surrounding community.

“We are committed to doing everything we can to make this transition as easy as possible, including providing severance packages and career placement services.

“We remain confident in the strength of our steel and polymer business and its long-term potential. This is a strategic decision to strengthen our focus in key markets while enhancing the performance of both our existing steel network and broader business portfolio.”

Greif, which operates on a global scale, aims to enhance its operations by eliminating costs amounting to $100m from the business.

Last month, Packaging Corporation of America finalised an agreement to acquire Greif's Containerboard business for $1.8bn.

This business includes two mills with a production capacity of approximately 800,000 tonnes and eight sheet feeders and corrugated plants across the US.

Additionally, Greif manages timber properties in the south-eastern US and employs more than 14,000 staff members across over 250 facilities in 37 countries.