(St. Paris, Ohio) – Sonoco will close its plant here by December and 78 workers will lose their jobs. The plant, a former Caraustar Industries facility, was acquired by Sonoco last year.

The St. Paris plant makes containers used in products like baby formula, powdered drink mixes and nuts. The work will be absorbed by other Sonoco facilities. “This was a result of market conditions,” Robin Montgomery, a spokesperson for Sonoco, told Manufacturing & Technology eJournal. “It was a business decision and it was made based on the rising costs of raw materials, rising cost of energy and the overall economy.”

Sonoco said it is providing severance and outplacement assistance to employees. “Closing a plant is always difficult because of the impact on employees,” said Howard Coker, division vice president and general manager. “However, it is necessary to ensure that the company can remain a low-cost competitor.”

St. Paris is about 35 miles north of Dayton.

Hartsville, S.C.-based Sonoco (NYSE: SON) is a global manufacturer of industrial and consumer products and packaging services with 334 operations in 35 countries. The company has more than 18,000 employees and reported 2007 sales of $4 billion.

Earlier this month, Sonoco announced it would increase prices a minimum of five percent on all of its tube and core products shipped in the United States and Canada. The price increase, which will be in addition to an energy surcharge announced in June, will be effective September 15.

According to the company’s filing with the state of Ohio, workers at the St. Paris plant were represented are represented by the United Steel Workers of America. For more information on Sonoco call 843-383-3226 or visit their Web site at http://www.sonoco.com.