Greif, Inc. announces additional steps of the Transformation for its Global Rigid Industrial Packaging & Services Business

Date: 2015-03-02

DELAWARE, Ohio (March 2, 2015) ‐‐ Greif, Inc. (NYSE: GEF, GEF.B) today announced recent actions to reduce fixed manufacturing costs and better align assets with marketplace trends
and customer requirements.

Greif has taken the following actions as part of the Transformation process:

  • Consolidation of steel drum manufacturing in Fenton, Missouri into the Greif Chicago operations.
  • Consolidation of Harahan, Louisiana steel drum manufacturing into two existing steel drum operations in Houston, Texas.
  • Consolidation of manufacturing operations in Hanweiler, Germany.
  • Consolidation of the reconditioning operations in Mendig, Germany to operations in Rumbeke, Belgium.

"Today’s announcement demonstrates our resolve and commitment to make swift and strategic interventions and transform Greif into a more efficient company better positioned for growth," said David Fischer President and CEO. "By proactively managing our portfolio, we are fully executing on our stated goal to improve capacity utilization throughout the Greif network. These actions will have no effect on any of our previously announced growth platforms."

Chief Operating Officer Pete Watson said, "Our customer needs are constantly evolving. These consolidations ensure we are operating the right number of plants and production lines in the right locations to meet current and future customer needs."

Watson continued, "Utilizing the tools of the Greif Business System, I am confident we can meet our customers' needs with a smaller, more efficient production footprint in certain regions. We are also undertaking necessary commercial steps, including pricing actions and SKU rationalization. Throughout the Transformation process we will relentlessly pursue efficiency gains necessary to improve our business and to ensure a fair return to our shareholders."

Karen Lane, Global Senior Vice President of Human Resources added, "With a project of this scope, we faced difficult decisions regarding our talented and dedicated employees whose jobs are being eliminated. We are mindful of the personal impact of these changes and are committed to assisting our affected employees through their transition."