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Capacity utilization has decreased over several years from a reduction in demand driven by the general economic downturn and the continuing trend of U.S. manufacturing moving offshore. To help restore the balance, Caraustar and the industry have reduced capacity by closing facilities. We call this difficult process "right-sizing."
Over the past five years, 37 recycled boxboard paper machines, representing more than 1.7 million tons, or 20 percent, of total industry capacity, have been shut down. Caraustar shut down six machines with a combined capacity of 370,000 tons. In 2003 alone, Caraustar permanently closed machines in Halifax, VA, and Lockport, NY, and indefinitely idled another machine in Rittman, OH.
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