Following the closure last week of glass processing plant “Gioula” in Athens, two paper mills located in Thessaloniki and Kilkis in northern Greece, owned by Sonoco Greece S.A, a subsidiary of US Packaging giant Sonoco Products Co. are also shutting down.

Executives of the company in Luxembourg, where Sonoco Alcore Sarl, the European arm of the multinational corporation, is based, made a relevant announcement, leaving 90 employees without a job.

According to reports, the Greek subsidiary is expected to shut down permanently by May 31 after fulfilling its pending orders. The company’s foreign managers cited exorbitant energy costs as the primary reason for their decision to close both facilities.

The closure marks a significant blow to the local economy and underscores the challenges faced by industries grappling with rising operational costs in Greece.

Despite the positive turnover performance of the company based on the Athens Stock Exchange data for the fiscal year 2021 (+34%), the pre-tax and interest results amounted to a loss of 350,761 euros. The post-tax result also showed a loss of 540,335 euros.

Sonoco Greece S.A. has been operating in Greece for nearly 30 years and until recently had operated 4 plants across the country. Sonoco Alcore Sarl oversees 70 manufacturing units across 18 countries on the continent.