East-side distribution center with 80 workers set to close

October 8, 2010

Oshkosh, Wis.-based Hoffmaster Group Inc. announced on Thursday that it will shut down its paper-dining-products distribution center on the east side of Indianapolis, resulting in the loss of 80 jobs.

The company notified the Indiana Department of Workforce Development that the center, at 2525 N. Shadeland Ave., will permanently close by Feb. 28.

Hoffmaster said in the notice that it is closing the facility to “remain competitive in the industry.” A third-party logistics provider in the Chicago area will assume the plant’s distribution responsibilities, the company said.

Reached by phone, Hoffmaster CEO Rory Leyden said the lease on the facility expires in June, which prompted the company to look for a distribution location closer to its manufacturing operations in Wisconsin.

The marketing department at the Shadeland facility will relocate to outside office space in the city.

Hoffmaster was founded in 1947 to manufacture paper napkins. It was purchased in 2004 by Highland Park, Ill.-based Solo Cup Co., the nation’s largest manufacturer of plastic, foam and paper cups, bowls, plates and cutlery.

Solo sold the company in 2007 to Kohlberg & Co. LLC, a private equity firm in New York.

The Shadeland facility distributes paper plates, napkins and invitations for birthday and holiday parties.



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