BROOMFIELD, Colo., Feb. 24, 2016 /PRNewswire/ -- Ball Corporation (NYSE: BLL) announced that it will cease production at the company's Weirton, West Virginia, flat sheet production and end-making plant by the first quarter of 2017. The plant's capacity will be supplied by other Ball facilities.
Ball expects to record a total after-tax charge of approximately $21 million, primarily for employee severance and benefits, facility shut down costs, and asset impairment and disposal costs. The majority of the charge is expected to be recorded during the remainder of 2016.
"We are continuing our efforts to maximize value in our existing business by redistributing production services within our system, ensuring these services are strategically located near our customers and suppliers, and investing in the quality of our production services in their new locations," said Jim Peterson, chief operating officer, global food and household products packaging. "While closing a plant is always difficult, this decision will allow us to remain competitive in a changing market and to continue delivering first-class products to our customers."
Ball acquired the Weirton plant in 1993 and expanded the plant through an additional acquisition in 2006. The plant employs approximately 300 people, and produces lithography and coating for flat sheet tinplate as well as can ends. Weirton employees will be provided benefits in accordance with the effects bargaining process and Ball policies and will be able to apply for open positions 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 15,000 people worldwide and reported 2015 sales of $8.0 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.
Forward-Looking Statements This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; customer and supplier consolidation, power and supply chain influence; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt; and successful or unsuccessful acquisitions and divestitures, including, with respect to the proposed Rexam PLC acquisition, the effect of the announcement of the acquisition on our business relationships, operating results and business generally; the occurrence of any event or other circumstances that could give rise to the termination of our definitive agreement with Rexam PLC in respect of the acquisition; the outcome of any legal proceedings that may be instituted against us related to the definitive agreement with Rexam PLC; and the failure to satisfy conditions to completion of the acquisition of Rexam PLC, including the receipt of all required regulatory approvals.
SOURCE Ball Corporation