Packaging company Ball has decided to cease production at its three US-based beverage packaging facilities located in Birmingham, Alabama; Chatsworth, California; and Longview, Texas from next year.
The company will continue to supply products to its existing customers from other Ball facilities.
Ball will also construct a new beverage packaging facility in Goodyear, Arizona, which will focus on the production and supply of specialty cans in the south-western US.
The new facility is expected to start operating from the second quarter of 2018.
Ball Beverage Packaging North & Central America Carlos Medeiros said: “These transformational actions will optimise our plant network, realign our standard 12oz beverage can and end capacity, increase our manufacturing flexibility and drive efficiencies so we can better compete with other packaging substrates.”
With the closure, Ball anticipates a total after-tax charge of approximately $22m that will be used for employee severance, pensions and other benefits, facility shutdown and disposal costs.
It also expects to achieve nearly $50m of annual cost savings with this restructuring, which will be realised late next year and thereafter.
Opened in 1952, the Birmingham plant employs 91 people and manufactures beverage can ends, while the Chatsworth plant with 118 employees is used to produce different beverage cans.
Around 100 people work at the Longview plant, which manufactures cans in two sizes.
Subject to customer requirements, Birmingham plant and Longview plant are scheduled to cease operations in the second quarter of 2018, while the Chatsworth plant will terminate production in the end of the third quarter 2018.