CSAR Caraustar Industries (MM)

ATLANTA, Nov. 13 /PRNewswire-FirstCall/ -- Caraustar Industries, Inc. (NASDAQ:CSAR), a major supplier of recycled paperboard products in North America, today announced the consolidation of its two operations in Saginaw, Michigan into one new facility located at 3265 Commerce Centre. The two older facilities were turn-of-the-century, multi-storied buildings and were not designed for efficient manufacturing operations. The new facility provides more streamlined operations while reducing work in process and materials handling costs. The consolidation continues Caraustar's cost reduction strategy in geographic markets while ensuring long-term sustainability and competitiveness. The new facility allows for better and more efficient layout of machinery and processes. As a result, Caraustar will dispose of redundant assets, eliminate certain annual fixed costs, improve productivity, reduce direct labor costs and increase its ability to focus on new product development. Paul Curtis, vice president and regional manager, stated, "This move is a significant commitment to our Saginaw operations, customers and employees. It positions the operation to continue to be the first choice provider of tubes to the automotive industry. This consolidation will improve productivity while reducing manufacturing costs; which are necessary in today's competitive environment." Caraustar Industries, Inc. is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products. The company is a socially responsible corporation, is committed to environmentally sound practices and is dedicated to providing customers with outstanding value through innovative products and services. Caraustar has developed its leadership position in the industry through diversification and integration from raw materials to finished products. Caraustar serves the four principal recycled boxboard product end-use markets: tubes and cores; folding cartons; gypsum facing paper and specialty paperboard products. For additional information on Caraustar, please visit the company's website at http://www.caraustar.com/ . This press release contains certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that represent the company's expectations, anticipations or beliefs about future events, operating results, financial condition, business plans and industry trends and their potential impact on the company's business and financial results. Statements that are not statements of historical fact, as well as statements including words such as "expect," "intend," "will," "believe," "estimate," "project," "budget," "forecast," "anticipate," "plan," "may," "would," "could," "should," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by such statements. Such risk factors include, among others: fluctuations in raw material prices and energy costs, increases in pension and insurance costs, downturns in industrial production, housing and construction and the consumption of durable and nondurable goods, the degree and nature of competition, the degree of market receptiveness to price increases and energy surcharges, changes in demand for the company's products, the degree of success achieved by the company's new product initiatives, uncertainties related to the company's ability to successfully complete its announced strategic transformation plan, future financing plans and needs, the impact on the company of its results of operation in recent years and the sufficiency of its financial resources to absorb the impact, changes in government regulations, the company's ability to service its substantial indebtedness, and unforeseen difficulties with the consolidation, integration of the company's accounting and control operations and IT systems. Additional relevant risk factors that could cause actual results to differ materially are discussed in the company's registration statements and its most recent reports on Form 10-K, 10-Q and 8-K, as amended, filed with or furnished to, the Securities Commission. These documents may be accessed through the web site of the Securities and Exchange Commission (http://www.sec.gov/). The company does not undertake any obligation to update any forward-looking statements and is not responsible for any changes made to this press release by wire or Internet services. CONTACT: Robert G. Pender, Jr. VP, Sales and Marketing Converted Products Group 704-916-8405 DATASOURCE: Caraustar Industries, Inc. CONTACT: Robert G. Pender, Jr., VP, Sales and Marketing, Converted Products Group of Caraustar Industries, Inc., +1-704-916-8405 Web site: http://www.caraustar.com/

Copyright