Flexible packaging manufacturer Printpack Inc. is closing its printing plant in Greensburg, Ind.
The sluggish U.S. economy played a role in the decision, especially the flat bakery market, Vice President Terry Harper said in a recent telephone interview.
The real reason was that we had forecast for some considerable growth in that industry, and that didn't materialize. We have a brand-new plant in Bloomington [Ind.] that makes similar products, so that was also a factor. We had to rationalize capacity, Harper said.
The Atlanta-based corporation, which has 20 plants in the U.S. and seven in countries including Mexico, England, Poland and China, filed a layoff notice Nov. 17 with the Indiana Department of Workforce Development, under the Worker Adjustment and Retraining Notification Act.
According to the filing, the jobs of about 230 employees at the Greensburg plant will be terminated beginning Jan. 20 and continuing throughout 2011.
The factory makes plastic packaging for the bakery and food industries.
According to Harper, workers at the Greensburg plant were told of the impending closure Nov. 17.
Employees in Greensburg will be offered opportunities to transfer to other Printpack plants in the U.S., Harper said.
Layoffs will occur in waves, with 150 being let go in January and the remaining workers being phased out later in 2011. The plant's future will be determined at that time, he said.
Printpack acquired the plant as part of its $365 million purchase of James River Corp.'s flexible packaging business in 1996.