Ball will close its Torrance, California, beverage can plant by the end of the third quarter of 2011, subject to customer requirements.
The 45-year-old plant employs approximately 120 people and operates three lines, two that produce 12oz cans and one that produces 16oz cans. One of the 12oz production lines from Torrance will be relocated to Ball’s Whitby, Ontario, beverage can plant and is scheduled to start up during the second quarter of 2011.
Ball expects to record a total after-tax charge of approximately $12.4m in 2011, primarily for employee severance and pensions and facility clean-up costs, of which $6.4m is expected to be recorded in the first quarter of 2011.
The closure is expected to be cash flow positive to Ball upon final settlement of all closure-related costs and disposition of all assets and will result in significant fixed cost savings to the company.
Ball will also expand specialty beverage can production in its Fort Worth, Texas, plant. Ball supplies to its customers beverage cans in more than 20 sizes as well as other beverage can innovations.
A new line in Fort Worth will make 16oz and 24oz specialty cans and is expected to begin production by the beginning of the third quarter of 2011.
Torrance employees will be provided severance and outplacement services, and will be able to apply for open positions within Ball.
Source: Ball Corporation
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