Packaging Corporation of America (PKG) announced that it will close its full‑line plant in Richmond, Virginia, with the shutdown scheduled for June. The WARN letter filed on March 31, 2026, indicates that 110 hourly production and maintenance employees will be affected.
The closure is part of PKG’s ongoing effort to rationalize its manufacturing footprint and focus on higher‑efficiency plants. The company has already closed its No. 2 paper machine and kraft pulping facilities at the Wallula, Washington mill in February 2026, resulting in 200 layoffs, and announced the shutdown of two corrugated packaging plants in Allentown, Pennsylvania, and Salisbury, North Carolina, in late 2025, affecting 168 jobs.
Customers served by the Richmond site may experience a temporary shift in supply, but PKG plans to keep a satellite warehouse in North Chesterfield, Virginia—currently staffed by six employees—operational to support regional distribution. The company is working with state and local officials to provide dislocated‑worker assistance and to facilitate transfers for employees interested in other PKG locations.
PKG’s recent quarterly results show mixed performance: revenue growth has been offset by higher operating costs and lower volumes in some segments. The plant shutdown is expected to reduce overall production capacity but is intended to strengthen the company’s long‑term cost structure and operational efficiency.
By consolidating production into more efficient facilities, PKG aims to improve its competitive position in the containerboard and packaging market, where it competes with International Paper, WestRock, Graphic Packaging, and Greif. The move reflects a broader strategy to adapt to industry trends such as e‑commerce growth, sustainability demands, and material innovation.
Overall, the Richmond plant closure signals PKG’s commitment to long‑term profitability through cost discipline and operational leverage, while also addressing workforce impacts through structured support and transfer opportunities.
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