Global packaging giant Rexam plc will close its Bowling Green, Ohio, closure factory in the fourth quarter of 2008.
In a July 29 news release, the London-based company said the shutdown resulted from consolidation of Rexam's manufacturing operations related to the company's recent acquisitions.
``It will allow us to improve the overall utilization of our existing operations,'' said Graham Chipchase, group director of plastic packaging for Rexam, in the release.
The Bowling Green plant, which began operation in 2001, employs 134 and injection molds closures for containers including coffee creamer and ketchup bottles. The plant was part of Toledo, Ohio-based Owens-Illinois Inc.'s closures business, which Rexam bought in 2007 for $1.8 billion.
Since that deal closed, Rexam has scheduled the closure this year of a former O-I blow molding plant in Rossville, Ga., that employs 85 and makes packaging for medical diagnostics products. Rexam also will shutter a facility in West Lafayette, Ind., that employs 60 and injection molds packaging for medical diagnostic products. That plant was part of Precise Technology Inc., a company Rexam bought in 2005.
Employees affected by the Bowling Green closing will receive a severance package and will be provided outplacement assistance, the company said.
Local officials in May were asked to make the case for keeping the Rexam plant open, said Sue Cook, executive director of the Bowling Green Community Development Foundation, in a July 29 telephone interview.
``We had been concerned, since we made that proposal and hadn't heard back from Rexam,'' she said.
Rexam's global sales are about £3.6 billion ($7.1 billion) and the company employs 22,300 worldwide. Its injection molding operation ranks 11th among North American companies in Plastics News' 2008 survey, with 2006 sales of $465 million.
The Bowling Green and West Lafayette closings will leave Rexam with 15 injection molding plants in North America.