Printpack Inc. is closing a label and tamper-evident band plant in Fredericksburg, Va., a site that the company says has been called the foundation of its label business.
The facility, which employs about 150 workers, will be phased out over the next several months and is expected to completely close during the first quarter of 2016.
”The Fredericksburg plant has been an important contributor to the company's success since its opening in 1981 and has been the foundation of our labels business since the late 1980's,” CEO Dennis Love said in a statement.
“The decision to close this facility was very difficult for us but necessary to enhance our competitiveness in a very challenging market,” he said.
Production from the site will be transferred to other Printpack plants in the months ahead, the company said.
Some employees, what the company called “qualified associates,” will be considered for potential transfer opportunities to other company sites. Those who do not transfer will receive a severance package, Printpack said.
Atlanta-based Printpack is the seventh largest plastics film & sheet manufacturer in North America, with estimated relevant sales of $1.05 billion, according to Plastics News' most recent ranking.