Ball to shut down two can plants

Can maker Ball will cease production at two of its North American beverage can making plants at the end of this year.

The company is consolidating its 12oz beverage can and end production capacity to meet changing market demand.

Ball’s metal beverage packaging plants in Columbus, Ohio, and Gainesville, Florida, will stop production 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 12oz cans. The Gainesville plant employs approximately 125 people and produces several different beverage can ends for standard can sizes.

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.

“These actions are in response to a loss of standard 12oz beverage can volume beginning 1 January, 2013, as well as continued growth in speciality beverage can packaging, which is an increasingly important part of our business,” says Raymond Seabrook (pictured above), executive vice president and chief operating officer, global packaging. “We will continue to actively manage our overall cost structure, pursue new speciality can opportunities and better position our manufacturing footprint to meet changing market conditions to offset the impact of the volume loss.”

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