Menasha Packaging Restructuring Creates Phoenix-Area Sales, Design, And Distribution Facility; Manufacturing Shifts To Santa Fe Springs, Calif.

3/10/2005

NEENAH, Wis....

As part of Menasha Packaging Company's restructuring of its Western Region operations, the company will shift manufacturing operations at its Phoenix plant to its Santa Fe Springs, Calif., plant. In the Phoenix market, Menasha will continue to maintain a sales/design and distribution facility.

The restructuring will eliminate 22 full-time positions at the Phoenix Plant. There are 29 full-time employees working at the Phoenix Plant.

All manufacturing to service customers will be done at the company's Santa Fe Springs, Calif., plant. This will not affect the company's ability to serve customers or deliver products.

The change in status of the Phoenix Plant follows a customer and market analysis in the Western Region of Menasha Packaging's operations. It was determined that it would be more efficient to restructure operations and conduct all manufacturing out of the Santa Fe Springs, Calif., plant while maintaining a sales/design and distribution facility in the Phoenix area. Currently, Menasha Packaging also has distribution facilities in Santa Teresa, N.M., and several locations in Mexico.

The employees were notified of this action on Tuesday, March 8. Some of the employees will be offered employment opportunities at other locations as part of this restructuring. All other employees will receive severance packages and outplacement assistance.

Menasha Packaging Company is a subsidiary of Menasha Corporation.