Tyco Plastics & Adhesives plans to close a blown film plant in Macedon, N.Y., possibly the final major plastics facility closed as part of Tyco's current restructuring.
The 200,000-square-foot plant will cease operations July 2, said Tyco spokesman Jay Pomeroy, speaking from Tyco headquarters in Princeton, N.J. A 125,000-square-foot warehouse in nearby Webster, N.Y., also will close, he said. The facilities have a total of 200 employees, all of whom will be affected by the move.
Parent Tyco International Ltd. announced a sweeping consolidation plan in November to reduce costs. The Macedon plant is the seventh Tyco polyethylene film facility to be closed since then.
``It's all about matching our capacity with demand,'' Pomeroy said.
The plant makes blown PE film for industrial trash liners, primarily used in the institutional market. Tyco bought the plant in 2001 from Pactiv Corp. and shifted more equipment there in early 2003 after closing a film and cutlery site in Louisville, Ky.
While other Tyco divisions might be affected by the current plant evaluation, the company is not planning any more significant restructuring moves this fiscal year in its plastics and adhesives group, according to Pomeroy.
``This will be the last major restructuring announcement that we have to make in North America in fiscal 2004,'' Pomeroy said.
On Feb. 3, Tyco released its first-quarter 2004 figures, reporting 9 percent growth compared with the 2003 period. The Plastics & Adhesives group showed a 2 percent rise in sales for the quarter, ending at $459.7 million. The group recorded about $2 billion in sales last year.
Overall, Tyco has closed 47 facilities and laid off about 1,200 workers since the start of the $390 million restructuring program.