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Colbert to Close Louisville Manufacturing Facility

Colbert Packaging Corporation, a leading manufacturer of folding cartons, rigid paper boxes and paperboard specialty products, today announced that it is closing its 33,500 square foot manufacturing facility in Louisville, Ky.

Colbert obtained the Louisville facility, as well as equipment, inventory, employees and customer accounts, in its December 2009 acquisition of folding carton manufacturer Dayton Carton - and kept the operation running for more than two years. Colbert will cease operations in Louisville within 60 days.

“At this time, with increased manufacturing capacity in our three other production facilities, and in an effort to streamline operations to meet the increasing demand from customers for cost containment, we have made the difficult, albeit necessary, decision to close our Louisville manufacturing plant,” said Jim Hamilton, president of Colbert Packaging. “Two years ago, through our acquisition of Dayton Carton, we gained talented and dedicated employees, prestigious customer accounts, and cutting-edge equipment. Since that time, we have had many positive experiences that have improved our value proposition to all Colbert customers.”

Customers currently serviced through Louisville will be transitioned to other Colbert facilities, including its two operations in Lake Forest, Ill., and one in Elkhart, Ind. Equipment currently used in Louisville will also be transferred to the other Colbert facilities. The successful stock box program, which was acquired from Dayton Carton, will be moved to Colbert's 109,000 square foot facility in Elkhart. Many of the 35 full-time employees currently in Louisville are being given the opportunity to apply for open positions at one of Colbert's other locations. As such, the total number of jobs lost as a result of this plant closure is not known at this time, though Colbert projects that it will affect less than five percent of its total workforce.

“As a result of the closing, three other facilities will gain equipment and accounts, and customers will benefit from increased capacity, operational improvements, and ultimately, the cost containment they require. We're committed to ensuring a seamless transition for all customers and delivering the same level of service they have come to expect from us in Louisville,” said Hamilton. “At the same time, we recognize that we're impacting people's livelihoods, and therefore, this decision has been a difficult one. We are doing everything we can to make the transition less difficult for Louisville employees and retain as many of them as possible.”
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