Alcoa Flexible Packaging will close a film-production plant in Boyertown, Pa., and exit the snack food market.
The Richmond, Va.-based unit of manufacturing giant Alcoa Inc. gradually will close the Boyertown plant, with production planned to stop by early October, said Alcoa Flexible Packaging spokeswoman Victoria Welch.
The plant shutdown will affect 93 hourly and 19 salaried employees, who will be offered severance packages. Alcoa plans to sell the plant and surrounding property and relocate some equipment to other facilities, Welch said.
The plant, while a good performer, did not fit into Pittsburgh-based Alcoa's long-term plans, she said. Boyertown serves the snack food and confectionary markets.
The plant, which was part of Alcoa's purchase of Reynolds Metals Co. in 1999, extrudes film and performs flexographic printing of film laminations, Welch said. Reynolds bought the plant in 1995.
The plant did not fit with the rest of Alcoa's flexible packaging portfolio, which includes production of pouch materials, shrink film and overwraps and liner stock.
``We're exiting the snack food business to focus on more strategic areas,'' Welch said July 31. ``At the same time, the company is continually looking at other options for expansion, and we're always in a growth mode.''
That growth mode led Alcoa in July to complete the purchase of Ivex Packaging Corp. of Lincolnshire, Ill. Alcoa Flexible Packaging plans to integrate Ivex's technical packaging group into its Richmond operation. That group performed custom thermoforming at four plants for the medical, electronics and retail markets.
The Ivex buy doubles the size of Alcoa Flexible Packaging to eight plants, split between film and foil production and thermoforming.
Ivex's former film business, Kama Corp., will stay a separate Alcoa unit called Alcoa Kama, working from Hazleton, Pa.