Canadian Packaging

Ball To Close BC Can Manufacturing Plant


September 2, 2010
by Canadian Packaging Staff

Ball Corporation has announced plans to consolidate the production equipment in its Richmond, BC, plant into other company manufacturing facilities. The Richmond plant, which produces steel food cans, will cease production during the first quarter of 2011 and its customers will be served by other Ball facilities.

The company expects to record a largely non-cash, after-tax charge of approximately $7-million related to the plant closure, of which approximately $3-million will occur in the third quarter of 2010. After the final disposition of the land and building, the closure is expected to be cash positive by approximately $8-million.

"Over the past two decades, our manufacturing operations in the Richmond plant have decreased as market demand and customer needs have changed," says Michael W. Feldser, president of Ball’s metal food and household products packaging division, Americas. "By consolidating the plant’s production into other Ball facilities, we will better control our costs in this very competitive market and further align our supply with customer demand."

The Richmond plant manufactures steel cans for the Alaskan and Canadian salmon industry. It opened in 1985 and currently employs approximately 40 people. Employees will be offered outplacement over the next several months. Other benefits, including severance, will be provided in accordance with the plant’s collective bargaining agreement.

Ball Corporation is a supplier of high-quality packaging for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the U.S. government.

For more Ball information, visit www.ball.com.