Fort James Corp. announced recently it will permanently close its folding carton packaging plant in Chambersburg, Pennsylvania, beginning on or around June 1, 1999.

This decision was made after a thorough study of the company's current and anticipated production needs in the competitive and changing folding carton industry. The plant closing is part of the company's ongoing efforts to improve efficiencies, reduce costs and optimize capacity within the Fort James Packaging Business.

Fort James will consolidate production from its Chambersburg plant, which manufactures folding cartons for the consumer marketplace, to other packaging facilities in its system. Its closure is consistent with the strategic direction of Fort James' Packaging Business to improve its financial performance and value to customers by reducing costs, maximizing asset utilization and the continued upgrading and investment in its facilities.