Specialty packaging injection molder AptarGroup Inc. is consolidating manufacturing in North America by closing two plants, in Stratford and Torrington, Conn.
The company also announced plans to buy Dallas-based Fusion Packaging I LP, a maker of cosmetic packaging products, and officials are also talking about the impact of the coronavirus on its operations.
Crystal Lake, Ill.-based Aptar, which is publicly traded, reported its fourth-quarter results on Feb. 20 and discussed them with financial analysts on Feb. 21.
On consolidation, Aptar President and CEO Stephan Tanda said it will cost about $20 million to close the two Connecticut plants by the end of 2020. He said the company would rationalize production capacity into its other North American plants.
"We continuously evaluate and optimize our operations to adapt to changing market conditions to ensure we are delivering the very best to our customers," Tanda said. "With these changes we will be in a better position to serve our North American beauty and home customers, and focus on long-term profitable growth."
He said Aptar has consolidated plants in other regions as well, including in Argentina, Indonesia and India.
The Stratford plant employed 207 and made caps and pumps, according to a 2016 news report. The Torrington plant won a state sustainability award in 2014 for replacing hydraulic injection presses with more efficient electric machines.
In response to questions, Tanda said the company does not plan to consolidate any additional North American production. He added that in 2019, Aptar sold an injection molding plant in Libertyville, Ill., to Flex Ltd., which has continued to mold closures for Aptar.