Berry Plastics Corp. is closing a film plant Aug. 13 in Lakeville, Minn., according to local officials.
In a July 8 telephone interview, Adam Kienberger, the city's economic development specialist, said Evansville, Ind.-based Berry informed the city May 13 under the Worker Adjustment and Retraining Notification Act of its decision to close the facility.
Berry will lay off 67 current employees and 28 furloughed workers, Kienberger said.
In the notice, Berry said the closure plan resulted from its acquisition of an undisclosed company with similar manufacturing capacity, he said.
Kienberger did not know how long the Lakeville plant had been in continuous operation or what Berry plans to do with the facility or machinery. They basically have told us that they are keeping their options open, he said.
Berry and the state of Minnesota are working to get laid-off employees job placement help, including in some other Berry plants, he said.
Calls to Berry's Evansville headquarters for comment were not returned.
In December, Berry acquired film and flexible packaging manufacturer Pliant Corp. of Schaumburg, Ill., for $602.7 million. Pliant employed 2,900 at 18 plants worldwide and had annual sales of about $1 billion. Berry now runs the business as its specialty films division.
Berry's Lakeville plant until 2007 was operated by Covalence Specialty Materials Holding Corp. of Bedminster, N.J. formerly Tyco Plastics and Adhesives. Berry and Covalence were owned by private equity firm Apollo Management LP of New York, which retains ownership of Berry along with Graham Partners Inc. of Newtown Square, Pa.
Berry bought Pliant from Apollo and Graham after Pliant emerged from bankruptcy.
For the first quarter of 2010, Berry reported losses of $3.8 million on sales of $1 billion, compared with losses of $7.4 million on sales of $757.8 million for the year-ago period.
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