Ball to Close Brampton, Ontario, Plastic Packaging Plant

Tag : plastic manufactures

BROOMFIELD, Colo., June 26 /PRNewswire-FirstCall/ -- BallCorporation (NYSE: BLL) announced today that it plans to close itsplastic packaging manufacturing plant inBrampton, Ontario. Theclosed operations will be consolidated into the company's otherplastic packaging manufacturing facilities inNorth America. Theclosure is expected to occur by the end of the third quarter of2008.
The action will result in an after-tax charge of approximately $5 million , of which approximately $2 million will be recorded in the second quarter of 2008. The remainingcosts will be recorded in the second half of 2008 as they areincurred. The closure is expected to result in annual, fixed-costsavings of approximately $4 million beginning in 2009.
TheBrampton plant manufactures polypropylene bottles for foods.Ball acquired the facility in 2006 with the company's acquisitionof certain North American plastic bottle container assets of AlcanPackaging.
Brampton employees will be provided severance and outplacementservices. The plant employs approximately 90 people.
Ball Corporation is a supplier of high-quality metal and plasticpackaging for beverage, food and household products customers, andof aerospace and other technologies and services, primarily for theU.S. government. Ball Corporation and its subsidiaries employ morethan 15,500 people worldwide and reported 2007 sales ofapproximately $7.4 billion .
Forward-Looking Statements
This release contains "forward-looking" statements concerningfuture events and financial performance. Words such as "expects,""anticipates," "estimates" and similar expressions are intended toidentify forward-looking statements. Such statements are subject torisks and uncertainties which could cause actual results to differmaterially from those expressed or implied. The company undertakesno obligation to publicly update or revise any forward-lookingstatements, whether as a result of new information, future eventsor otherwise. Key risks and uncertainties are summarized in filingswith the Securities and Exchange Commission, including Exhibit 99.2in our Form 10-K, which are available at our Web site and at http://www.sec.gov . Factors that might affect our packaging segments includefluctuation in product demand and preferences; availability andcost of raw materials, including recent significant increases inresin, steel, aluminum and energy costs, and the ability to passsuch increases on to customers; competitive packaging availability,pricing and substitution; changes in climate and weather; cropyields; competitive activity; failure to achieve anticipatedproductivity improvements or production cost reductions, includingour beverage can end project; mandatory deposit or otherrestrictive packaging laws; changes in major customer or suppliercontracts or loss of a major customer or supplier; and changes inforeign exchange rates, tax rates and activities of foreignsubsidiaries. Factors that might affect our aerospace segmentinclude: funding, authorization, availability and returns ofgovernment and commercial contracts; and delays, extensions andtechnical uncertainties affecting segment contracts. Factors thatmight affect the company as a whole include those listed plus:accounting changes; changes in senior management; successful orunsuccessful acquisitions, joint ventures or divestitures;integration of recently acquired businesses; regulatory action orlaws including tax, environmental, health and workplace safety,including in respect of chemicals or substances used in rawmaterials or in the manufacturing process; governmentalinvestigations; technological developments and innovations;goodwill impairment; antitrust, patent and other litigation;strikes; labor cost changes; rates of return projected and earnedon assets of the company's defined benefit retirement plans;pension changes; reduced cash flow; interest rates affecting ourdebt; and changes to unaudited results due to statutory audits orother effects.
SOURCE Ball Corporation