Ball Corporation announced that it will cease production at the company's Weirton, West Virginia, flat sheet production and end-making plant by the first quarter of 2017. The plant's capacity will be supplied by other Ball facilities.
Ball expects to record a total after-tax charge of approximately $21 million, primarily for employee severance and benefits, facility shut down costs, and asset impairment and disposal costs. The majority of the charge is expected to be recorded during the remainder of 2016.
"We are continuing our efforts to maximize value in our existing business by redistributing production services within our system, ensuring these services are strategically located near our customers and suppliers, and investing in the quality of our production services in their new locations," said Jim Peterson, chief operating officer, global food and household products packaging. "While closing a plant is always difficult, this decision will allow us to remain competitive in a changing market and to continue delivering first-class products to our customers."
Ball acquired the Weirton plant in 1993 and expanded the plant through an additional acquisition in 2006. The plant employs approximately 300 people, and produces lithography and coating for flat sheet tinplate as well as can ends. Weirton employees will be provided benefits in accordance with the effects bargaining process and Ball policies and will be able to apply for open positions within Ball.
Source : ball.com