In order to align its manufacturing capacity and fixed cost structure to match market conditions, Sonoco, Hartsville, S.C., is implementing further cost reduction measures which are expected to achieve approximately $28 million in annualized pre-tax savings when fully phased in through 2009.

“This realignment calls for the closing of approximately 15 plants globally and the reduction of approximately 700 positions,” says President and CEO Harris DeLoach, Jr. “The majority of these plant closings are small in size and our focus is on reducing our global industrial products manufacturing footprint.”

He estimates the cost of realignment to be $29 million, of which approximately $20 million in pre-tax restructuring charges are expected to be taken against earnings in the fourth quarter of 2008. The majority of the costs involve severance and other cash costs that will be incurred through 2009.