Broomfield – Packaging manufacturer Ball Corp. said today it will close two plants in North America, laying off 340 workers, as part of a realignment of its food-and-household product division.
The closures, which will be completed by year end, include a leased facility in Alliance, Ohio, that Ball obtained as part of its acquisition of U.S. Can Corp. The plant manufactures plastic pails and has about 40 employees.
Ball also will close a metal food can manufacturing plant in Burlington, Ontario, Canada, which has about 300 employees.
Ball will pay severance and offer job-transition services to laid-off workers, said John A. Friedery, Ball Packaging Products senior vice president and chief operating officer.
Equipment from the Alliance plant will be moved to facilities in Ohio and Georgia while equipment from the Canadian plant will be moved to other facilities, sold or scrapped.
The decisions were made after Ball acquired U.S. Can earlier this year. The company also expects to implement other cost-cutting measures as it continues the realignment, Friedery said.
The Alliance plant closure will be an opening balance sheet item related to the U.S. Can acquisition. Ball said it will take an estimated $25 million after-tax charge in the fourth quarter related to equipment disposal and the Burlington closure.
Ball’s stock rose 5 cents to $41.90 a share in morning trading on the New York Stock Exchange.
Based in this Denver suburb, Ball manufactures packaging products and owns Ball Aerospace & Technologies Corp. It reported 2005 sales of $5.8 billion.
