Sonoco Products Co. will close its Cambridge, Ontario, Sonoco Plastics plant.
The closing was prompted by changes in markets and will be complete by summer 2012, spokesman Robin Montgomery confirmed in an Oct. 4 interview. The facility produces thermoformed plastic food trays.
The shutdown affects 100 workers.
“We do encourage the employees to apply for positions within Sonoco that are available; however, we cannot make guarantees that they will get those jobs. At the same time, we will be offering outplacement services to assist employees in their job search,” Montgomery said.
Hartsville, S.C.-based Sunoco acquired the Ontario plant in June 2010 as part of its purchase of thermoformer Associated Packaging Technologies Inc. of Chadds Ford, Pa., from New York private equity firm Castle Harlan Inc. for $120 million.
“Following our customers, and the relocations of assets that they made, we saw production levels [in Cambridge] decrease as we moved capacity into other regions,” Montgomery said. “At a point, it became a facility that was no longer competitive.”
The plant's assets will be distributed to other Sonoco Plastics facilities, he said. The company has two other plastics plants in Canada, both blow molding facilities in Mississauga, Ontario.
In other news, Jim Bowen, senior vice president of the company's North American primary materials group, retired after a 40-year career. John Grups was named division vice president and general manager, according to a Sept. 30 news release.
Sonoco is a $4.1 billion maker of industrial and consumer products and packaging, with about 300 operations in 34 countries.