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

Image

Report: Brands are falling short on packaging sustainability

January 29, 2015 5:19 pm ET

Packaging in general, and plastic packaging in particular, has a long way to go in terms of recycling, according to a pair of environmental groups.    More

Image

Profit dips at Bemis Co. Inc.

January 29, 2015 2:04 pm ET

Profit dipped for Bemis Co. Inc. for all of 2014, but were up during the fourth quarter in what the company's leader called a “pivotal year....    More

Image

Plastics News Now: Losing weight with style, plastics in the Dragons' Den

January 29, 2015 6:00 am ET

A 19-year-old entrepreneur brings business to a U.K. injection molder after winning support on TV's Dragons' Den, auto suppliers combine...    More

Image

African equity fund invests in Kenya's General Plastics

January 28, 2015 4:24 pm ET

An African investment fund specializing in agriculture has invested in Kenyan packaging firm General Plastics Ltd. to provide funds to expand in the...    More

M&A deals in packaging hit record

January 28, 2015 1:49 pm ET

It's good to be in packaging these days. More precisely, it's good to be in packaging and decide to sell or merge.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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