Nov 10, 2005. /Lesprom Network/. Chesapeake Corporation announced on Thursday plans for a global cost savings program targeting combined pre-tax savings of $25 million on an annual basis. Some of these initiatives are underway, such as the proposed plant closure already announced at Birmingham, England. The program is expected to include the possible closure or consolidation of several facilities and broad-based workforce and overhead reductions, as well as cost savings from improvements to operating processes. Full implementation is expected over the next two years. The cost of these initiatives is expected to range from $30 million to $40 million on a pre-tax basis, with the cash flow impact being less due to the sale of related real estate and assets. "Global business conditions remain highly competitive and rationalizations within our customer base have had a negative impact on our operations," said Andrew J. Kohut, Chesapeake president. "When these initiatives are completed, we expect to emerge as a more cost-effective company, better able to compete in today's global marketplace. We believe that through these actions we are building a stronger company, in a better position to serve our customers on a long-term basis while improving shareholder returns." Consistent with current financial reporting requirements, the company will disclose specific restructuring initiatives and the associated charges and expected savings in future periods as specific projects are proposed, consulted upon, approved and implemented. Chesapeake Corporation is a leading international supplier of value-added specialty paperboard and plastic packaging with headquarters in Richmond, Virginia. The company is one of Europe's premier suppliers of folding cartons, leaflets and labels, as well as plastic packaging for niche markets. Chesapeake has more than 50 locations in Europe, North America, Africa and Asia and employs approximately 6 400 people worldwide.