BROOMFIELD, Colo., Sept. 1 /PRNewswire-FirstCall/ -- Ball Corporation (NYSE: BLL) announced today plans to consolidate the production equipment in its Richmond, British Columbia, plant into other company manufacturing facilities. The Richmond plant, which produces steel food cans, will cease production during the first quarter of 2011 and its customers will be served by other Ball facilities.
The company expects to record a largely noncash, after-tax charge of approximately $7 million related to the plant closure, of which approximately $3 million will occur in the third quarter of 2010. After the final disposition of the land and building, the closure is expected to be cash positive by approximately $8 million.
"Over the past two decades, our manufacturing operations in the Richmond plant have decreased as market demand and customer needs have changed," said Michael W. Feldser, president of Ball's metal food and household products packaging division, Americas. "By consolidating the plant's production into other Ball facilities, we will better control our costs in this very competitive market and further align our supply with customer demand."
The Richmond plant manufactures steel cans for the Alaskan and Canadian salmon industry. It opened in 1985 and today employs approximately 40 people. Employees will be offered outplacement over the next several months. Other benefits, including severance, will be provided in accordance with the plant's collective bargaining agreement.
Ball Corporation is a supplier of high-quality packaging for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the U.S. government. Ball Corporation and its subsidiaries employ more than 14,000 people worldwide and reported 2009 sales of more than $7.3 billion including discontinued operations. For the latest Ball news and for other company information, please visit http://www.ball.com.
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions are intended to 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 99.2 in our Form 10-K, which are available at our Web site and at www.sec.gov. Factors that might affect our packaging segments include fluctuation in product demand and preferences; availability and cost of raw materials; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve anticipated productivity improvements or production cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; and changes in foreign exchange rates or tax rates. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; changes in senior management; the current global recession and its effects on liquidity, credit risk, asset values and the economy; successful or unsuccessful acquisitions, joint ventures or divestitures; integration of recently acquired businesses; regulatory action or laws including tax, environmental, health and workplace safety, including in respect of climate change, or chemicals or substances used in raw materials or in the manufacturing process; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.
SOURCE Ball Corporation