Sonoco to restructure production in Germany

The Bunde plant located in Northwest Germany has a production capacity of 100 million units, while the Hockenheim 3 plant in Southwest Germany can produce 130 million units. The closures could affect 100 employees in total. The company will offer severance benefits and outplacement assistance after the final decision has been taken. The company has entered into consultation with the workforce representatives regarding closure of the Bunde and Hockenheim 3 production facilities.

The operational shutdown of the Bunde plant could become effective by May 31, 2016, while the operational shutdown of the Hockenheim 3 plant – one of two production facilities located in Hockenheim – could become effective in the third quarter of 2017.

‘Both plants have had a good operating history and excellent employees, and we regret having to discuss shutdowns,’ said Séan Cairns, general manager and vice president of Sonoco Consumer Products Europe. ‘However, due to recent production volume losses at both plants we see no alternative to this step.

‘Although our European business with consumer packaging keeps on growing and is developing very positively, we recently faced a significant decline in the production of tobacco packaging due to the revision of the European Tobacco Product Directive. For this reason and to make sure that our business is fit for the future, we plan to restructure our production in Germany.’

Independent of the planned closures, Sonoco Consumer Products Europe is to make an investment of 6.5 million EUR (7.1 millon USD) over the next 12 months at its Zwenkau plant in Eastern Germany. The investments will primarily focus on increased production capacity and environmental efficiency of Sonoco’s plastic consumer packaging production located near Leipzig.

‘While the planned closure of Bunde and Hockenheim 3 is a difficult decision, the capital to be spent in Zwenkau will turn our production site into one of the most efficient German plants in the industry,’ said Cairns. We look forward to beginning investment early in 2016 and to completing the program sometime near the end of 2016.’