Dec 14, 2010. /Lesprom Network/. Southern Plug and Manufacturing, Inc., a unit of Sonoco Products Company, will permanently close its Bastrop molded plug manufacturing plant. The plant has been shut down since it was destroyed by fire on November 5, 2010. The Southern Plug plant, which began operation in 1978, employed 50 full-time workers and primarily produced molded plugs used in tubes and cores for the paper industry, as the company said in a press release received by Lesprom Network. “This was an extremely difficult decision, particularly considering the impact it will have on the plant’s employees and their families,” said James Harrell, vice president, North American Converting for Sonoco. “Since fire destroyed the plant, we have been working with our customers to provide alternative supply sources while developing a longer-term solution. However, the loss of the Bastrop supply is transforming the market for molded plugs. Given these changes and the risk to supply created by a single large site, it is clear that development of a new dedicated manufacturing facility will no long meet the needs of the market. “Sonoco will remain in the molded plug business,” Harrell emphasized. “However, to meet the future needs of our customers, we will be developing a more diversified supply system, which includes using existing Sonoco plant sites as well as joint production and supply agreements with other producers. This strategy will allow us to reduce the risk to supply and better meet the broad geographic needs of our customers throughout North America.” As a result of the permanent closure, Bastrop employees will receive severance payments, extended benefits and career outplacement services. Sonoco is a global manufacturer of consumer and industrial packaging and provider of packaging services.