EVANSVILLE, IND. (Oct. 20, 2:50 p.m. ET) — Berry Plastics Corp. will close its Madisonville, Ky., closures plant in the first quarter of 2012, affecting 124 employees.
The Madisonville plant is part of the specialty and beverage closures business that Berry acquired from London-based Rexam plc in August for $360 million.
“A review of Berry's overall manufacturing operations following the acquisition determined that due to excess capacity, we have other sites — closer to many of Madisonville's customers — that have the capability to make these products.
“This action will help Berry streamline operations, improve our cost structure, and enhance our ability to meet our customers' needs,” Chief Operating Officer Randy Becker said in an Oct. 18 news release.
According to the release, some business currently in Madisonville will be transferred to Berry's Evansville, Ind., closures plant, which was also acquired from Rexam. The Evansville plant will increase staffing by about 20 as a result.
The plant's remaining business will be transferred to other Berry locations in Maryland, Illinois and Florida. Evansville-based Berry has not decided on its future plans for the Madisonville plant.
Berry will provide Madisonville employees with job placement assistance within the company and the local job market, according to the release.
The Rexam SBC unit acquisition added eight manufacturing facilities — seven in the United States and one in Brazil — to Berry's 75 manufacturing facilities worldwide. The Rexam unit also operated joint venture plants in Malaysia and Mexico and a technical center in Perrysburg, Ohio.