Ball to shut down beverage packaging end-making plant in US

30 July 2015 (Last Updated July 30th, 2015 18:30)

Ball Corporation is planning to shut down its beverage packaging end-making plant in Bristol, Virginia, US.

Ball Corporation is planning to shut down its beverage packaging end-making plant in Bristol, Virginia, US.

The Bristol plant employs close to 230 people and produces beverage can ends in a variety of sizes.

The closure is in line with the company's strategy to realign manufacturing footprint in order to meet the needs of customers as it actively manages its overall cost structure.

"We will continue to maximise value in our existing operations through optimising our network."

The operations at the plant will be ceased during the second quarter of 2016, following which, the plant's capacity will be supplied by other Ball facilities.

Ball North America metal beverage packaging president Daniel W Fisher said: "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 maximise value in our existing operations through optimising our network, as well as expanding into new and growing products, capabilities and markets to meet the needs of our customers."

Ball expects to record $19m in after-tax charge, primarily for employee severance and benefits, facility shutdown costs and other actions. Majority of the charge is expected to be recorded in the third quarter of this year.

The closure follows the company's acquisition of two metal end and closure facilities in Canton, Ohio, from Sonoco in February.

Ball and its subsidiaries employ 14,500 people worldwide and generated $8.6bn in sales last year.