Chesapeake Corporation Announces Proposal to Close Brussels Plant

Richmond, Virginia, USA, 13 May 2008 -- /PRNewswire/ -- Chesapeake Corporation (NYSE:CSK) today announced that it has initiated a review and made a proposal to close its carton manufacturing plant in Brussels, Belgium.

If the reorganization proposal is accepted and the Brussels plant is closed, production will be transferred to Chesapeake's nearby carton operation in Gent, Belgium, to support customer requirements.

"We are committed to further strengthening our pharmaceutical packaging business and delivering the highest quality products and services to our customers," said Andrew J. Kohut, Chesapeake chief executive officer and president. "This proposed closure will improve overall plant utilization while providing our customers with superior service and quality."

The proposed closure process would take place over the coming months and the jobs of the 42 employees at the Brussels plant could be deemed redundant. Chesapeake will consult with employee representatives regarding the reorganization proposal and will offer an employee support program if the closure occurs.

Chesapeake Corporation protects and promotes the world's great brands as a leading international supplier of value-added specialty paperboard and plastic packaging. Headquartered in Richmond, Virginia, the company is one of Europe's premier suppliers of folding cartons, leaflets, labels, and plastic packaging for niche markets. Chesapeake has 45 locations in Europe, North America, Africa, and Asia and employs approximately 5400 people worldwide.

Source: Chesapeake Corporation