ATLANTA (Sept. 1, 5:30 p.m. ET) — Bway Corp. will shut down its Plastican five-gallon pail factory in Macon, Ga., in 60-90 days.
Jeff O'Connell, the Atlanta-based company's vice president, treasurer and secretary, confirmed the decision to shutter the plant, which employs 65, in a Sept. 1 telephone interview.
The plant was one that Bway acquired in October 2010 when it purchased competitor Plastican Inc. of Leominster, Mass. Bway operates similar plants in Lithonia and Newnan, Ga.
“There was no need in the [southeastern U.S.] region to have that many plants so close to each other,” O'Connell said.
The Macon plant in 2010 was fined $52,000 for 11 worker safety violations found during an April inspection by the Occupational Safety and Health Administration, but O'Connell denied that the OSHA findings played a role in the decision to close the facility.
“It was simply an issue of overcapacity,” he said. “Closing Macon made the most sense out of the three Georgia plants.”
Machinery from the plant will be distributed among other Bway manufacturing sites, he said.
The closure leaves Bway with 22 plants in the U.S. and Canada making plastic and metal pails, including Plastican plants in Leominster, Dallas and Phoenix.
Bway reported third-quarter profit of $5.3 million on sales of $328.5 million, compared to losses of $54.1 million on sales of $288.7 million for the year-ago period.