Portola Packaging Inc. is consolidating closure production by closing a plant in Clifton Park, N.Y., to cut costs and improve efficiency.
The firm will move Clifton Park's production to its headquarters facility in Batavia, Ill., and to plants in Kingsport, Tenn., and Phoenix.
Kingsport will get the bulk of the transferred work. The transition begins immediately and will be done by November, the firm said in a news release. Clifton Park employs 84.
Clifton Park makes a broad range of closures, according to Roy Robinson, Portola's vice president of strategic marketing. But the plant has been hurt by high power costs. In fact, Portola expects to reduce its electric power rates by two-thirds as a result of the Clifton Park closure.
``Over the past three years, Portola has invested over $25 million in new manufacturing technologies that has dramatically increased output and consistency,'' noted Brian Bauerbach, president and chief executive officer, in a news release. ``This investment allows us to satisfy higher volumes with a smaller footprint.''
Prominent in the capital investment has been installation of compression molding capacity to make closures as well as high-cavitation injection molding.
``Five years ago we had no volume from compression molding,'' said John Murkin, senior vice president of manufacturing. ``Today it is nearly one-third of our volume.''
Bauerbach said customers will gain from the consolidation and capital investments because of improved product quality and consistency.
Portola identified the three plants getting Clifton Park's production as ``anchor'' plants. It also has molding facilities in Woonsocket, R.I., and Zapopan, Mexico.
Portola also does blow molding in Richmond, British Columbia; Montreal, and Edmonton, Alberta, under the Portola Blow Mold Technologies name.