DELAWARE, Ohio (News release) -- Greif said it will permanently close its steel and polymer drum facility in Merced, Calif., as part of its previously announced optimization efforts.

The industrial packaging products and services company expects operations at the facility to cease in September. About 43 positions will be affected by the closure.

"Making the decision to close a facility is always difficult" said Greif President and CEO Ole Rosgaard. "I want to express my deep gratitude to our colleagues in Merced for their hard work over the years and the positive impact they've had on the company and surrounding community. We are committed to doing everything we can to make this transition as easy as possible, including providing severance packages and career placement services."

The facility produces both steel drums and large and small polymer containers. After September, customer orders will be fulfilled by the company's remaining global steel and polymer network. The decision is part of Greif's efforts to remove $100 million in costs from its business operations.

"We remain confident in the strength of our steel and polymer business and its long-term potential. This is a strategic decision to strengthen our focus in key markets while enhancing the performance of both our existing steel network and broader business portfolio." said Rosgaard.