NEW YORK (AP) -- MWV AGI Media, a subsidiary of MeadWestvaco Corp., said Thursday it plans to close a plant in the Netherlands that makes paper-based packaging for the media and entertainment industry.
The facility in Uden, the Netherlands, is expected to discontinue operations by February 2009. The plant employs about 60 people.
The company said some production will transfer to other MWV AGI Media plants, and its capacity to meet customers' orders will not be affected.
"The decision to close the Uden facility is a difficult but necessary one" said MWV AGI Media President Steve Scherger in a statement. "In order to remain competitive and positioned for long-term growth, we must take steps that will deliver cost and operational efficiencies."
The Glen Allen, Va.-based company said it is working with Uden authorities to ensure that its layoff program complies with Dutch law.
MeadWestvaco Corp. shares fell 32 cents, or 2.7 percent, to $11.35 in trading after the opening bell.