Ball expects to record an after-tax charge of approximately $18 million, primarily for employee severance, pensions and other benefits, asset impairments, and facility shut down and disposal costs. The majority of this charge is expected to be recorded by mid-2017 and the net, after-tax cash costs are expected to be approximately $5 million.
"This action will better align our manufacturing footprint to meet the changing needs of our customers and the market, as we actively manage our overall plant system after the addition of seven North American Rexam plants upon close of the acquisition earlier this year," said Daniel W. Fisher, senior vice president, Ball Corporation, and COO, global beverage packaging. "While closing a plant is always difficult, balancing our supply with demand in the highly competitive beverage packaging industry will better position the company for the long-term."
The Reidsville plant opened in 1978 and was acquired by Ball in 1998 as part of the acquisition of Reynolds Metals Company. It produces beverage cans in a variety of sizes, and employs approximately 150 people. Reidsville employees may be provided benefits and outplacement services in accordance with the bargaining process, and are eligible to apply for job openings within Ball.
About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 18,700 people worldwide and reported pro forma 2015 sales of $11.0 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.
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SOURCE Ball Corporation