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Novolex Consolidation Strategy Leads to Plant Closures and Layoffs

Felix Baarz by Felix Baarz
August 24, 2025
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Packaging giant Novolex has announced the upcoming closure of a thermoforming facility in Bakersfield, California, a move that will result in 127 employees losing their jobs. The plant, which was formerly part of Pactiv Evergreen, is scheduled to cease operations on October 14, 2025. This decision was formally communicated to the state of California via a WARN notice and is part of a broader strategic realignment following the company’s massive $6.7 billion acquisition of Pactiv Evergreen, finalized in April 2025.

This is not an isolated incident in Novolex’s post-merger integration process. Earlier this year, the company completed the shutdown of another former Pactiv Evergreen plant located in Kalamazoo, Michigan. That closure, finalized in June 2025, eliminated 153 positions. These actions highlight a deliberate effort by Novolex to streamline its expanded manufacturing network, which specializes in food, beverage, and specialty packaging.

Should investors sell immediately? Or is it worth buying Pactiv Evergreen?

Strategic Realignment in the Packaging Sector

The acquisition of Pactiv Evergreen transformed Novolex into an industry behemoth, with a portfolio encompassing more than 250 brands and 39,000 products. The scale achieved through this deal is now driving a comprehensive reassessment of the company’s production capacity and geographic footprint. The closure of facilities, such as the one in Bakersfield, points to a focused strategy of eliminating operational redundancies and consolidating manufacturing to enhance efficiency.

These organizational shifts are characteristic of large-scale post-merger integrations, where the goal is to strengthen the combined entity’s competitive stance in a dynamic market. Under Novolex’s strategic direction, all former Pactiv Evergreen locations are undergoing evaluation. The changes are reshaping the packaging industry landscape, underscoring a sector-wide push toward optimized production and distribution networks.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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