Ball Corp. is ceasing production at two North American beverage packaging manufacturing plants to consolidate the company’s 12-oz. beverage can and end production capacity to meet changing market demand.
Ball will cease production at its metal beverage packaging plants in Columbus, Ohio, and Gainesville, Fla., by the end of the fourth quarter of 2012, subject to customer requirements. The Columbus plant employs approximately 110 people and currently operates two of four existing lines that produce standard 12-oz. cans. The Gainesville plant employs approximately 125 people and produces several different beverage can ends for standard can sizes.
A news release says that Ball expects to record a total after-tax charge of approximately $30 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 2012.
“These actions are in response to a loss of standard 12-oz. beverage can volume beginning Jan. 1, 2013, as well as continued growth in specialty beverage can packaging, which is an increasingly important part of our business,” said Raymond J. Seabrook, EVP and COO for global packaging at Ball. “We will continue to actively manage our overall cost structure, pursue new specialty can opportunities and better position our manufacturing footprint to meet changing market conditions to offset the impact of the volume loss.”
Gainesville employees will be provided severance and outplacement services. Columbus employees will be provided benefits in accordance with the effects bargaining process. Employees from both plants can apply for open positions within Ball.