Constar International Inc. will close its Orlando, Fla., and Kansas City, Kan., blow molding plants.
The company also will cut its corporate salaried ranks. In all, the cutbacks affect 250 employees, Philadelphia-based Constar said in an Oct. 8 news release.
In light of volume declines and in an effort to better serve our customers, we concluded that consolidating plant operations would have a meaningful impact, said Constar President and CEO Grant Beard.
In connection with restructuring, Constar expects to incur total pretax restructuring charges of $7 million to $10 million during the next several quarters.
The majority of the restructuring is expected to be completed by the end of 2011. The firm expects annual cost savings of $22 million as a result.
The Orlando site is expected to close at year's end; the Kansas City plant is set to close in the first quarter of 2011. The firm said plant customers will be served by other Constar plants.
Constar recently underwent a change in top management. On Sept. 14, Grant Beard a partner at Anderson Group, a Bloomfield Hills, Mich.-based private equity firm was named as Constar's new president and CEO. He succeeds interim President and CEO Ruth Mack.
Beard formerly was president, CEO and director of publicly traded TriMas Corp. Before that, he was chairman, president and CEO of Health Media Inc., now part of Johnson & Johnson.
Plastics News estimates Constar's 2009 North American blow molding sales at $508 million. Its U.S. plants employ about 1,100.