Consumer packaging leader Rexam plc is blowing a farewell kiss to its lipstick-case molding operations in Torrington, Conn., which will close later this year.
``Pressure to reduce price is resulting in customers sourcing lipstick components from lower-cost countries at the expense of manufacturing locations in the U.S.,'' according to Hein Onkenhout, regional chief executive officer of Rexam's Beauty & Pharma unit.
``Over the past three years, we worked very hard to keep the plant going by ... implementing world-class lean manufacturing,'' Onkenhout added in a May 6 news release. ``However, these efforts have unfortunately not offset declining sales and margins.''
The move will eliminate about 150 jobs, according to Rexam spokesman Robert Holowiak. Most of those cuts will be in place by Sept. 1, with the 54,000-square-foot plant closing by the end of the year.
Some employees will be offered positions at Rexam's injection molding plant in nearby Thomaston, Conn., where the company makes cosmetic fragrance pumps.
That plant is doing quite well and will add to its workforce later this year, Holowiak said.
Some of the Torrington work will go to a plant in Sussex, Wis., with the rest going to Brazil and China.
Some of the injection presses in Torrington might be transferred to Sussex as well, although Holowiak said some equipment might remain in Torrington in an attempt to attract a potential buyer for the site.