Sweetheart Cup Co. announced July 24 it will shut down its Manchester, N.H., injection molding plant. The operations will be consolidated into Sweetheart's nearby North Andover, Mass., facility.
The Owings Mills, Md.-based company expects about half of the 170 employees being laid off in Manchester to accept relocation assignments in North Andover.
The Manchester facility primarily produces cutlery. Other Sweetheart food-service injection molding plants are in Conyers, Ga., and Chicago.
Layoffs will start in October, and the 160,000-square-foot plant should be shut down by April, said Daniel M. Carson, vice president and chief administrative officer.
The North Andover facility also is picking up work from a Somerville, Mass., plant that closed in the spring, Carson said in a July 30 telephone interview. The North Andover facility is slightly larger than the nearly 200,000-square-foot Somerville facility, he said.
``We had space available in the North Andover facility that could easily accommodate several of the lines. We have space to accept all of the equipment as well,'' Carson said. ``There will be no reduction in volume that was formerly coming out of the Manchester plant.
``We feel [the relocation is] a better utilization of our assets.''
With a total of 6,000 employees, Sweetheart Cup's parent, Sweetheart Holdings Inc., reported sales of $952.7 million, up from the $863.8 million the year before.
Injection molding made up $79 million of the company's corporate sales, according to Plastics News' most recent ranking of North American injection molders. Carson declined to offer sales figures for the plants affected by the company's recent consolidation decisions.