Smurfit Westrock announced the closure of its California corrugated facility, a decision that will affect 141 workers. The shutdown is scheduled for December 14, 2025, following a WARN letter filed on October 14, 2025.
The closure is part of a broader capacity rationalization plan that has already reduced the company’s overall capacity by nearly 600,000 tons. Earlier this year, Smurfit Westrock shut down its St. Paul, Minnesota coated recycled board mill and its Forney, Texas containerboard mill.
Management said the company is focusing on eliminating inefficient or loss‑making operations to strengthen margins and reduce costs. The California plant had been operating at a loss for several quarters, and its closure is expected to improve the company’s operating efficiency.
Smurfit Westrock reported Q3 2025 net sales of $8.0 billion, up 4.3% year‑over‑year, and net income of $245 million, a turnaround from a $150 million loss in Q3 2024. Adjusted EBITDA for the quarter was $1.3 billion with a 16.3% margin, slightly below the 16.5% margin in Q3 2024.
The company’s strategy includes a focus on its North America and Latin America segments, which posted adjusted EBITDA margins of 17.2% and 21.3% respectively, while the EMEA & APAC segment reported a 14.8% margin amid challenging market conditions.
CEO Tony Smurfit noted that the company is navigating a “challenging demand backdrop” and is pursuing a footprint optimization plan that includes closing uneconomic volume and reducing global headcount by over 4,500 employees since the July 2024 merger.
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