Hood Packaging closing Ontario film plant

By Michael Lauzon
Correspondent

Published: July 10, 2013 4:18 pm ET
Updated: July 10, 2013 4:20 pm ET

Related to this story

Topics Packaging, Film & Sheet, Extrusion

Hood Packaging Corp. has told employees it plans to close its Burlington, Ontario, plastic film plant by Oct. 1.

“It’s a financial decision based on profitability of this plant and its equipment,” said Hood spokesman Ron More in a telephone interview. The operation was established in the early 1960s, estimated More.

Burlington produces mainly linear low density polyethylene film and heavy-gauge industrial bags. Two other plants, in Calgary, Alberta, and Tyler, Texas, make similar products and will take over the production. Hood has begun relocating machinery and will continue to do so in stages until fall.

Burlington employs about 65 in the Burlington film plant and layoffs will begin July 19. The plant is unionized under the United Steelworkers.

USW Local 16505 President Laszlo Horvath said he did not agree with how Hood is handling the closure. The company has already begun moving work to the United States and has not upgraded machinery, he said in a telephone interview.

“They are offering the minimum to workers as specified in legislation,” Horvath said. Hood is offering 26 weeks of severance pay. The average wage at the site is C$25-27 (US$23.75-25.65).

“[USW] has been running this plant for nearly 50 years,” Horvath recalled. Most workers are 45 to 55 years old and will have trouble finding equivalent employment, he believes. Horvath said the relocation could be a form of union busting.

A unionized Hood paper plant in Burlington will remain open.

Hood runs nine film plants in North America. The plants make a diverse product slate, including pouches, milk bags and laminations.

Plastics News estimated Hood’s North American film sales were about $190 million in its 2012 film and sheet survey.

 


Comments

Hood Packaging closing Ontario film plant

By Michael Lauzon
Correspondent

Published: July 10, 2013 4:18 pm ET
Updated: July 10, 2013 4:20 pm ET

Post Your Comments


Back to story


More stories

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

EU moving closer to rules that will reduce plastic bag use by 80 percent

April 17, 2014 10:54 am ET

European Union countries could have to reduce the use of plastic shopping bags by at least 80 percent by 2019 under draft rules backed by the...    More

Image

Polyair rebuilds from Sandy with help from Process Control

April 16, 2014 4:11 pm ET

Hurricane Sandy gutted Polyair Inter Pack Inc.'s Carlstadt, N.J., plant more than a year ago, and Brian Clawson won't soon forget the devastation.    More

Image

British consumers still want their squeeze bottles when it comes to ketchup

April 16, 2014 10:02 am ET

Research commissioned by the British Plastics Federation's packaging group shows that when it comes to the nation's favorite tomato ketchup, 77...    More

With European Parliament vote looming, official urges bag restriction

April 16, 2014 9:56 am ET

Janez Potocnik, Europe's commissioner for the environment, told the European Parliament April 15 that plastic shopping bags are a “highly visibl...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events