Carton & Custom Packaging

Business Description: Caraustar has grown its competitive presence to a top ten position in the U.S. folding carton market. This large, competitive mainstream carton market which uses many board grades and serves a broad range of customers continues to be impor-tant. More recently, Caraustar's strategic direction has shifted to focus on offering a complete portfolio of primary and secondary packaging along with certified folding cartons to the pharmaceutical and healthcare industries. Increased outsourcing of all packaging requirements by major companies will be addressed by the broad capabilities and techno-logically superior equipment of our Specialty Packaging Group.

1998 Highlights: Caraustar sold 293 thousand tons of recycled paperboard to the folding carton market in 1998, an increase of two percent over 1997. Converted folding carton volume increased by 47.8 percent in 1998 to 90 thousand tons compared to 1997, as a result of the 1997 acquisition of Oak Tree Packaging. Total industry volume of 3,156 thousand tons in 1998 was down 3.2 percent from 3,259 thousand tons in 1997.

Folding Carton Operations:

ACC Services, Inc. Charlotte, NC Atlantic Coast Carton Co., Inc. Charlotte, NC Boxall, Inc. Birmingham, AL Carolina Paper Box Co., Inc. Burlington, NC Chesapeake Fiber Packaging Corp. Hunt Valley, MD The Garber Company Ashland, OH

Mid Packaging Group, Inc. Kingston Springs, TN Mid-State Paper Box Co. Randleman, NC Oak Tree Packaging Corporation: Thorndike, MA Versailles, CT York, PA Packrite Packaging, Inc. Archdale, NC

Contract Packaging and Manufacturing Operations:

Special Packaging, Inc.:
Bucyrus, OH
Robersonville, NC
Strasburg, OH
General Packaging Service, Inc.
Clifton, NJ