The World's First Paper Packaging Giant Launched A New Round Of Factory Closures

The world's first paper packaging giant launched a new round of factory closures

According to a Notice of Adjustment and Retraining (WARN) filed with the U.S. government of Oregon, Murphy Fishrock plans to close a corrugated packaging plant in Portland, Oregon, and make layoffs. Robbie Johnson, Murphy Shakelock's director of external communications for North America, confirmed the news via email. He said the company will lay off employees in phases as the permanent closure of the factory is expected to last more than 60 days. According to the notice, the first layoffs are scheduled to start in June this year, when 72 employees will be affected.

The notice also states that some of the affected employees are represented by trade unions and their right to leave will be subject to the terms of a collective bargaining agreement. Employees who are not union representatives do not have the right to work stoppage. Johnson added that eligible employees can apply for other open positions in the company's intranet. At the same time, capacity at the Portland facility will be transferred to Murphy Visllock's facilities in other regions. The company has several plants in the region, including a recycling plant in Portland, a paper mill in Longview, Washington, and other plants further north in Washington state.



As to the reason for the closure, Johnson explained that it was part of Murphy Visllock's regional optimisation efforts. Since the merger of Murphy Capa and Vislok in July 2024, company executives have repeatedly stated publicly that they are evaluating some of their legacy business units, particularly the Solid Bleached Kraft Paperboard business, in a bid to streamline operations. CEO Tony Murphy made it clear on an earnings call last July that some carton factories would either need to be more efficient or would be forced to close.

In fact, Murphy Vislrock has been implementing cost-cutting measures. In another earnings call in October 2024, Tony Murphy mentioned that the company had recently laid off 800 employees. Murphy provided an update on the earnings call in February, saying that more than 1,000 employees had left or were about to leave as part of the company's streamlining plan. In addition, Murphy Fishrock announced earlier this year that it would close a containerboard mill in Bridgeview, Illinois, as part of an effort to optimize its layout, and began laying off employees in March.