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January 2007

Caraustar closes carton plant

Caraustar Industries, Inc. announced the closure of its York Carton Plant in York, Pennsylvania. Caraustar expects to consolidate the majority of the York plant's production into existing Caraustar folding carton locations to generate increased efficiency and operational effectiveness.

The company will record a pre-tax charge of approximately $4.0 million, of which approximately $2.6 million will be non-cash, in association with this closure.

The closure of the York plant will affect approximately 61 salaried and hourly employees.

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