Silgan Plastics Corp. will close one of its two plants in Woodstock, Ill., by the end of 2011.
The company notified employees Jan. 3 of the closure of the food-container manufacturing facility, Chief Financial Officer Robert Lewis said in a Jan. 20 telephone interview.
We're transitioning to a new technology, away from the technology that is in that plant, he said.
Silgan in 2010 licensed Kortec Inc.'s multilayer injection molding technology for packaging wet pet foods, fruit cups and microwaveable soup containers; Lewis said the Woodstock facility did not receive any of that equipment.
The plant employed 45 but 19 workers were let go Jan. 3. Lewis said 26 employees remain to fill orders.
The earliest [the closing] would happen would be sometime in early May, but our intention is to run it through the remainder of 2011, he said.
The 190,000-square-foot plant manufactured containers for clients including Nestlé SA and Campbell's Soup Co.
Silgan also operates a 130,000-square-foot tube extrusion plant in Woodstock.
Silgan Plastics is a subsidiary of Silgan Holdings Inc. of Stamford, Conn.
For the third quarter of 2010, Silgan Holdings reported profit of $65 million on sales of $1 billion, compared to profit of $74 million on sales of $1.02 billion for the year-ago period. For the first nine months of 2010, the company earned profit of $128 million on sales of $2.35 billion, compared to profit of $135 million on sales of $2.36 billion for the year-ago period.
According to Securities and Exchange Commission filings, plastic containers made up 15 percent of Silgan's overall sales for the quarter and about 19 percent for the first nine months of the year.