Sealed Air eliminating about 1,000 jobs
ELMWOOD PARK, N.J. High raw material and energy costs are forcing Sealed Air Corp. to cut 900-1,000 employees about 5 percent of the company's workforce and will result in some facility closures or consolidations, company officials said.
The Elmwood Park-based packaging company reported second-quarter sales of $1.28 billion, a 12 percent increase over the same period in 2007. But Sealed Air's quarterly profit was lower at $62.6 million, compared with $73.9 million in 2007.
In a July 30 news release, President and Chief Executive Officer William Hickey said the film maker and thermoformer has incurred about $75 million in increased raw materials costs. Thanks to price increases, Sealed Air has recovered about half of that, he said.
Layoffs, closures or consolidation of smaller facilities are expected to save Sealed Air $50 million to $60 million annually beginning in 2009, he said. The majority of the cutbacks will be implemented this year, Hickey said.
Delphi shutting Packard plant in Ohio
TROY, MICH. Delphi Corp.'s Packard Electric unit is closing one of its Ohio plants and transferring work, equipment and most workers into a nearby plant as auto industry volumes continue to drop.
The Cortland, Ohio, plant opened in 2001 as a state-of-the-art injection molding facility with highly automated production including computerized, unmanned carts used to collect finished parts.
Since the facility opened, Troy-based Delphi also has launched a renovated injection molding plant in nearby Vienna Township, Ohio. That plant offers the same highly automated production.
But with automotive production falling in North America, demand for the electrical connectors manufactured at both the Cortland and Vienna plants has dropped, prompting the company to merge production from both plants into the Vienna site, said Delphi spokesman J. David Olsen in a July 31 telephone interview.
Cortland has 118 employees. All of the 87 hourly workers will be absorbed into Delphi operations at Vienna and other nearby facilities, Olsen said, along with the bulk of the 31 salaried staff members.
Delphi expects to complete the transfer the work and close Cortland by the end of the first quarter of 2009.
Berry boosting size of one mold shop
EVANSVILLE, IND. Berry Plastics Corp. is seeking a tax abatement from Vanderburgh County for a 15,000-square-foot addition that will double the size of Berry's Evansville tool shop.
The Evansville-based company said it will add about 20 employees as part of the expansion, which will replace a tool shop Berry operates in Chicago. Berry is asking for an abatement on both the $1.1 million building addition and $1.9 million in new machinery.
If the county approves the incentive, property taxes will be phased in over eight years, and equipment taxes over a nine-year period.
The city of Evansville recently granted Berry a tax abatement for $27.9 million in new equipment at its headquarters in return for a commitment by the company to add about 90 workers within five years of the project's start. About 1,200 of Berry's 12,600 global employees work in the Evansville area.
Berry also is building a 600,000-square-foot distribution center near the Evansville airport for $20 million.
Hasco refocusing, cutting US production
LUDENSCHIED, GERMANY German tooling-component supplier Hasco Hasenclever GmbH + Co. KG is restructuring its North American operations to phase out manufacturing and instead focus on sales and distribution.
The company, headquartered in Ludenschied, will cut 40 of the 50 jobs at its Arden, N.C., facility and close its office in Valencia, Calif.
Hasco America Inc. manufactures mold bases and other tooling parts in Arden and plans to reduce production there over the ``next several months,'' the company said in a July 31 news release.