Ball to close one of its oldest beverage packaging plants
Colorado-based Ball Corporation, famous for its glass canning jars, said it will close one of its oldest North American beverage packaging plants by the second quarter of 2016.
Located in Bristol, VA, the plant opened in 1971 and currently serves as a production facility for beverage can ends. According to Ball, the plant's capacity will be supplied by other Ball facilities. The closure will affect 230 employees.
Ball expects to record a total after-tax charge of approximately $19 million, primarily for employee severance and benefits, facility shut down costs and other actions. The majority of the charge is expected to be recorded in the third quarter of 2015.
“This action will better align our manufacturing footprint to meet the needs of our customers as we actively manage our overall cost structure," said Daniel Fisher, president, North American metal beverage packaging. “Closing a plant is a difficult decision. We compete against plastic, glass and metal packaging in a highly competitive market, and we will continue to maximize value in our existing operations through optimizing our network, as well as expanding into new and growing products, capabilities and markets to meet the needs of our customers.”