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GIBRALTAR PACKAGING ANNOUNCES MODERNIZATION/CONSOLIDATION PLAN

 CHARLOTTE, N.C., Jan. 10 /PRNewswire/ -- Gibraltar Pakaging Group, Inc. (NASDAQ: PACK) anouned today its board of directors approved a plan to close its Statesville, N.C., plant and consolidate the business for that plant into the company's existing facility in Marion, Ala. As a result the company's Niemand division will close its Statesville plant by late spring 1994. The company will spend $4.4 million to modernize and expand its Marion facility which produces specialty spiral wound packaging products. The costs of closing the Statesville facility will not result in a significant charge to earnings since these costs will be accounted for as adjustments to the original purchase price of Niemand, purchased by Gibraltar in April of 1993.
 Chairman and Chief Executive Officer D.C. Abbott indicated, "This consolidation plan will generate significant savings by lowering wage costs and eliminating duplicate overhead costs associated with two plants. Additional savings will be realized with productivity gains associated with the new manufacturing equipment and processes. These savings are anticipated to begin by late fourth quarter. Our visionary modernization plan will be very supportive of our Niemand division's customers' growing, sophisticated packaging requirements." The company does not expect to lose any significant customers or volume as a result of the move.
 Gibraltar Packaging Group, Inc. designs and manufactures high quality packaging and provides contract fulfillment serving a variety of industries including pharmaceutical, food, cosmetic, textile, toy, automotive aftermarket, tobacco, specialty confectionery, and other consumer markets. Headquartered in Charlotte, N.C., it operates facilities in Alabama, Indiana, Nebraska, and North Carolina.
 -0- 1/10/94
 /CONTACT: Jay Kilkenny, chief financial officer, Gibraltar Packaging, 704-366-2929/
 (PACK)


CO: Gibraltar Packaging Group, Inc. ST: North Carolina IN: PAP SU:

CM -- CH011 -- 0689 01/10/94 16:09 EST
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Publication:PR Newswire
Date:Jan 10, 1994
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