UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 30, 2008
THE NEWARK GROUP, INC.
(Exact name of registrant as specified in its charter)
New Jersey | 333-118844 | 22-2884844 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
20 Jackson Drive
Cranford, New Jersey 07016
(Address of principal executive office)
(Zip Code)
(908) 276-4000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.05. Costs Associated with Exit or Disposal Activities
On June 30, 2008, The Newark Group, Inc. (“the Company”) announced the permanent closure of its Haverhill Paperboard mill in Haverhill, Massachusetts, effective August 29, 2008. On July 1, 2008, the Company announced the permanent closure of its Bennington Paperboard mill in North Hoosick, New York, effective August 30, 2008. The decision to shut down these mills was made based on the need for further rationalization of capacity within the Company’s Paperboard Mill Division, and is expected to result in earnings improvement of approximately $10.0 million per year.
The Company expects to incur cash costs of approximately $4.0 million in connection with these closings for severance benefits for employees, equipment dismantling and relocation and other associated costs.
Item 7.01. Regulation FD Disclosure
On Monday, June 30, 2008, the Company began informing its paperboard customers of a $50 per ton price increase on all grades of recycled paperboard. This change will take place beginning with shipments on or after July 28, 2008.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
THE NEWARK GROUP, INC. | ||||
Date: July 3, 2008 | ||||
By: | /s/ Joseph E. Byrne | |||
Joseph E. Byrne | ||||
Vice President and Chief Financial Officer |