Consumers Packaging Inc. to Close Hamilton Plant.

HAMILTON, Ontario--(BUSINESS WIRE)--Feb. 12, 1997--Consumers Packaging (TSE:CGC.) Consumers Packaging Inc. announced today that it will close its manufacturing plant in Hamilton, Ontario in early May, 1997. Current market conditions within the North America glass container industry and general industry consolidation make this decision unavoidable. As each of Consumers' competitors in the United States has reduced capacity and overhead in order to be a lower cost producer, Consumers must do likewise to maintain competitiveness.

"The glass container market has contracted while the industry manufacturing capacity has increased, creating a challenging business climate that Consumers Packaging Inc. must address to ensure the future well being of our Company and as many employees as possible", says Mr. John J. Ghaznavi, Chairman and C.E.O. of Consumers in expressing his regret at the necessity of closing the Hamilton plant. "In order for Consumers to remain competitive on a North American basis, we have invested over $150 million in our Canadian manufacturing facilities over the last three (3) years. This investment has resulted in Consumers having the capacity to produce substantially the same sales volume from six manufacturing facilities instead of seven. Products that are currently manufactured in Hamilton will be produced in other Consumers facilities in order to maintain our commitment to customer needs. This decision does not in any way reflect upon the ability or performance of our employees in Hamilton, some of whom we hope to transfer to other Consumers' locations", said Mr. Ghaznavi.

The Company will be working with the union and government manpower services to initiate retraining and job relocation opportunities. The plant employs approximately 360 full time employees, members of the Aluminum, Brick and Glass workers (ABGW) Union and approximately 40 salaried staff. The plant employees will be receiving severance in accordance with their collective agreement. This closure will balance Consumers' production capacity with existing profitable business and is expected to favourably impact its future earnings. The effect of the transaction will be reflected in its first quarter financial statements and will not require any special charge against its 1997 earnings.

Consumers Packaging Inc. is a leading designer and producer of high quality glass containers. Headquartered in Canada, the Company will continue to operate six Canadian manufacturing facilities and will distribute its products domestically and internationally. Operating as Consumers Glass, it is the market share leader and only glass container producer in Canada, and is the third largest in the U.S. and Canada after its acquisition of a controlling interest in eleven (11) plants formerly owned by Anchor Glass Container Corporation of Tampa, Florida. Consumers Packaging Inc. is 62 percent owned by G&G Investments, Inc. of Pittsburgh, Pennsylvania.

CONTACT: Consumers Packaging Inc.

John J. Ghazanavi, 416/232-3209