Portola Packaging expanding two plants, closing Batavia factory

Published: February 11, 2013 1:49 pm ET
Updated: February 11, 2013 1:52 pm ET

Related to this story

Topics Packaging, Injection Molding, Containers/closures, Compression molds

NAPERVILLE, ILL. -- Closure manufacturer Portola Packaging Inc. is expanding production at its facilities in Kingsport, Tenn., and Tolleson, Ariz., and shuttering its Batavaia, Ill., plant.

Portola is spending $12 million to install new high-speed compression and injection molding equipment, upgrade existing production lines, and make infrastructure replacements and upgrades at the Kingsport and Tolleson plants. The expansion is already underway and should be completed by the third quarter of 2013, according to a Feb. 11 news release.

The company plans to hire about 30 employees at those locations when the expansion is complete.

The expansion is in response to growing demand for hot-fill and aseptic beverage closures and Portola's growing market share of the dairy business, the company said.

Increased capacity in Kingsport and Tolleson led Portola to end production at its Batavia plant. That facility will begin slowing down production by the middle of April and will shut down completely by August, affecting 76 employees, according to the release.

The company said it would assist those employees via outplacement services.

The Batavia plant's 15 corporate employees will join Portola's headquarters in Naperville, Ill.

Portola cited "geographic location of expected growth opportunities" and the level of investment needed to upgrade the Batavia plant as factors in their decision.

"Our Batavia facility has been producing closures for Portola for the past 20 years. After extensive analysis and careful thought, we came to the conclusion that closing this facility and upgrading production at our other two plants was the best decision for our customers and company," said Kevin Kwilinski, president and CEO, in the release.

The Kingsport facility, located in northeast Tennessee, is close to major northeast, southeast and southern shipping lanes and is a reasonable distance to the midwest. The Tolleson plant, located in the Phoenix metro area, will serve the southwest, northwest and central United States, according to the release.

Portola said it has made a "substantial expenditure" in high-speed compression and injection molding capacity over the last three years. In that time, the company has grown its beverage closure volume by double-digit percentages annually, partially due to new manufacturing and quality initiatives as well as new product offerings for tamper evident, aseptic and extended shelf-life applications, according to the release.

The company had estimated total sales of $310 million in 2011, according to the most recent Plastics News ranking of North American injection molders.

Last year, Portola shut down its cosmetics packaging arm, Portola Tech, and ended production at facilities in Cumberland, R. I., and Nanhai, China.

When the Batavia plant closes, Portola will operate nine manufacturing plants worldwide – two in the United States, three in Canada, and one each in Mexico, the United Kingdom and Russia.


Comments

Portola Packaging expanding two plants, closing Batavia factory

Published: February 11, 2013 1:49 pm ET
Updated: February 11, 2013 1:52 pm ET

Post Your Comments


Back to story


More stories

Image

Blow molding machinery maker opens first plant in Taiwan

October 1, 2014 1:27 pm ET

Taiwanese equipment maker Kin Precision Industry Co. Ltd. has opened a 2,000-square-meter, 25-employee factory in Taichung, Taiwan, with an eye to...    More

Image

Houston Plastic continues to grow with new press, controlled production area

October 1, 2014 11:32 am ET

Custom injection molder Houston Plastic Products Corp. has extended its clamp tonnage range and added an environmentally controlled molding area.    More

Image

Speaker: Many issues can affect multi-cavity molds

October 1, 2014 2:02 pm ET

There are several conditions necessary across all cavities of a multi-cavity mold to ensure that all parts are produced the same. These include...    More

Image

Nucleation offers solution to shrinkage in HDPE closures

October 1, 2014 1:57 pm ET

For caps producers, nucleation can provide a practical solution to eliminate shrinkage variations in high density polyethylene beverage closures....    More

Image

Brown signs California's plastic bag ban into law

September 30, 2014 1:38 pm ET

Gov. Jerry Brown (D) made it official today: plastic bags are banned across the entire state of California.    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events