Berry Plastics Corp. is preparing to exit its Albertville, Ala., operations with the closure of a duct tape plant by Dec. 31.
A source at the plant confirmed local media reports that employees were informed of the closing July 14. Company officials were unavailable for comment.
Berry of Evansville, Ind., in 2009 closed a Covalence Adhesives specialty tapes plant, its other property in Albertville.
According to Securities and Exchange Commission filings, the latest plant to be closed is 318,000 square feet and employs 100.
In a July 22 story, The Sand Mountain Reporter newspaper in Albertville quoted Jeff Bennett, Berry's vice president of human resources, as saying the decision to close the plant was part of a strategy to exit the textiles business. The newspaper reported that machinery and other assets of the plant will be sold.
Its tapes, bags and coatings segment was Berry's underperformer for the first quarter of 2010. The division posted a loss of $2.1 million on sales of $159.5 million.
By comparison, Berry's rigid open-top packaging business reported quarterly profit of $28.2 million on sales of $277.2 million. The rigid closed-top packaging unit posted profit of $16.3 million on sales of $232.5 million.
For the quarter, Berry's specialty films business posted profit of $3.3 million on sales of $386.4 million.
As a whole, Berry reported losses of $3.8 million on sales of 1.1 billion for the first quarter, compared with a loss of $7.4 million on sales of $757.8 million for the year-ago period.
Berry's majority owner, Apollo Management LP of New York, recently added a pair of packaging-related acquisitions to its portfolio. In December, Berry acquired film and flexible packaging manufacturer Pliant Corp. of Schaumburg, Ill., for $602.7 million. Also in December, Berry acquired Superfos Packaging Inc. of Cumberland, Md., for $82 million.
Earlier this month, officials in Lakeville, Minn., said Berry will close a film plant there by Aug. 13 to reduce overcapacity.
Berry stands among North America's top 10 in four categories injection molding, film and sheet, thermoforming and blow molding according to Plastics News rankings. The company had about $4 billion in sales in 2009. It employs almost 17,000 at 81 manufacturing sites, including 68 in North America.