Atlanta, Georgia, USA, 13 November 2008 -- /PRNewswire/ -- Caraustar Industries, Inc. (Nasdaq: CSAR), a major supplier of recycled paperboard products in North America, today announced the consolidation of its two operations in Saginaw, Michigan, into one new facility.

The two older facilities were turn-of-the-century, multistoried buildings and were not designed for efficient manufacturing operations. The new facility provides more streamlined operations while reducing work in process and materials handling costs.

The consolidation continues Caraustar's cost reduction strategy in geographic markets while ensuring long-term sustainability and competitiveness. The new facility allows for better and more efficient layout of machinery and processes. As a result, Caraustar will dispose of redundant assets, eliminate certain annual fixed costs, improve productivity, reduce direct labor costs, and increase its ability to focus on new product development.

Paul Curtis, vice president and regional manager, stated, "This move is a significant commitment to our Saginaw operations, customers, and employees. It positions the operation to continue to be the first choice provider of tubes to the automotive industry. This consolidation will improve productivity while reducing manufacturing costs, which are necessary in today's competitive environment."

Caraustar Industries, Inc. is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products. The company is a socially responsible corporation, is committed to environmentally sound practices, and is dedicated to providing customers with outstanding value through innovative products and services. Caraustar has developed its leadership position in the industry through diversification and integration from raw materials to finished products. Caraustar serves the four principal recycled boxboard product end-use markets: tubes and cores; folding cartons; gypsum facing paper; and specialty paperboard products. For additional information on Caraustar, please visit the company's website at www.caraustar.com .