Silgan shutting one blow molding plant
CHESTERFIELD, MO. — Silgan Plastics Corp. announced Feb. 2 that it will close a blow molding plant in Port Clinton, Ohio, in the third quarter of 2010.
Existing business and equipment will be relocated to other Silgan Plastics plants in the Midwest.
“The closure of a plant is always a difficult decision, but we must continually evaluate our operating footprint to ensure we enhance our ability to meet our customer's requirements,” said President Alan Koblin, in a news release.
“By discontinuing operations at the Port Clinton facility, we will improve the company's overall operating flexibility, our ability to better utilize and optimize our supply chain, and increase our cost competitiveness now and in the future.”
Silgan acquired the Port Clinton facility in 1989. The company will offer transition benefits and other assistance to the approximately 150 affected employees.
The Chesterfield company ranked No. 8 in Plastics News' recent survey of North American blow molders, with related sales of $651.9 million.
Silgan Plastics's parent, packing company Silgan Holdings, had 2009 total sales of $3.1 billion and has a total of 66 plants in North and South America, Europe and Asia.
Core moving some production to Mexico
COLUMBUS, OHIO — Composite specialist Core Molding Technologies Inc. will spend $4 million to transfer some work from Columbus to Matamoros, Mexico, to keep up with shifting production from one of its customers.
Commercial truck maker Navistar Inc. of Warrenville, Ill., is moving some manufacturing from the U.S. to Escobedo, Mexico, and asked Core to move some of its parts production, the Columbus-based molder said in a Feb. 3 news release. Core makes sheet molding compound and fiberglass panels for the truck, automotive and personal watercraft industries.
Core expects to spend $3 million to transfer the work, and another $1 million in capital equipment in Matamoros. It also will transfer 90 jobs from Columbus to Mexico.
The company will seek out new business to fill out the Columbus facility, President and CEO Kevin Barnett said.
Video firm cancels big Cinram DVD deal
TORONTO — Cinram International Inc., an injection molder of media including DVDs, announced Feb. 1 that it is losing its biggest contract.
Warner Home Video Inc. gave written notice that it will terminate its agreements with Toronto-based Cinram effective July 31.
Cinram said the announcement will “directly impact operations in North America, Mexico, [the United Kingdom], France, Germany and Spain.” Warner Home Video accounted for about 28 percent of Cinram's US$1.5 billion in 2009 sales.
“While we are disappointed with the decision by WHV to end our over six-year relationship as their exclusive service provider of standard DVD products and distribution services, we will nevertheless be working closely with WHV to ensure an orderly transition of the services and ensuring that all affected employees and other stakeholders are given the absolute greatest consideration during this process,” Cinram CEO Steve Brown said in a news release.
Cinram picked up the exclusive, long-term agreement to handle the Warner Home Video business in 2003, when it bought Time Warner Inc.'s DVD and CD manufacturing and physical distribution businesses in the U.S. and Europe for $1.15 billion.
Cinram employs 17,000 and has the capacity to make 1.77 billion DVDs annually.
State's legislature poised to limit BPA
OLYMPIA, WASH. — Washington state is a step closer to banning bisphenol A use in baby bottles and food and drink containers.
Both chambers have passed bills to ban the use of BPA in food and drink containers for children ages 3 and younger. The state Senate passed its version Jan. 29 by a vote of 36-9, four days after the House passed its ban of BPA by a vote of 95-1.
The ban would be effective July 1, 2011, and excludes metal cans, which often are lined with epoxy resin. Pending is whether the ban will apply to sports water bottles, a provision that is in the House bill, but not the Senate.
Minnesota and Connecticut have restricted BPA, and a similar bill is moving forward in Wisconsin.
Copyright 2010 Crain Communications Inc. All Rights Reserved.