Closure injection molder Novembal USA Inc. is permanently closing two manufacturing sites in the United States and a third in Canada, throwing more than 100 people out of work.
The company has locations in Peoria, Ariz.; Edison, N.J.; and Rawdon, Quebec.
Novembal expects production to discontinue on Sept. 30 and the plants will shut down by the end of the year. This leaves what the company calls "certain administrative wrap-up functions" that are expected to be completed by Jan. 21, 2024, Novembal said in a letter to government officials regarding the U.S. sites.
Novembal is a unit of Sidel Group, a maker of packaging equipment including PET blow molding machinery. Sidel, in turn, is part of Tetra Laval Group, which includes aseptic packaging maker Tetra Pak.
"Sidel Group has decided to stop operations of its subsidiary company Novembal, a company producing a diverse range of caps for the liquid food packaging market. Novembal has been an independent part of Sidel Group since 2014, with operations in the U.S. and Canada," that company said in a statement provided July 31.
"This decision comes in response to changing business conditions and is planned to take effect at the end of September 2023. The group is committed to supporting the well-being of all impacted employees, and to making the best transition possible for all involved," the statement continued.
In the letter to government leaders in Peoria and Edison, Novembal Chief Financial Officer Asif Rahman provided details about the closures.
"The action is permanent, and no bumping rights exist, which means that there is no ability to displace less-senior employees at other company locations," he writes.
"All affected employees have been notified of their separation dates and that their separation from employment will be permanent. The company has given at least 60 days' notice pursuant to the WARN Act. This notice is based on the best information available at this time," the letter states.
WARN stands for the Worker Adjustment and Retraining Notification Act, a federal law passed in the 1980s in response to a series of high-profile plant closings that threw workers out of their jobs without notice. WARN was enacted in the United States to provide both workers and communities notice of impending closures at companies that employ 100 or more workers.
Novembal's presence in Arizona only started in 2017 with the opening of a new facility with high hopes.
"Novembal offers a full range of caps for the liquid food packaging market, and by providing our customers with innovative solutions we aim to maintain and build our competitive position in the market," said Lorenzo van Haelst, managing director for Novembal, in a statement at the time. "Peoria is a great place for growth and success."
Novembal became part of Sidel Group, transferring from Tetra Pak, after the company identified better synergies between Sidel's PET business and Novembal's caps and closures work. Company officials, at the time, indicated the move made sense because both Novembal and Sidel are dedicated to PET applications, and they both enjoy an extensive "market crossover" in the water, carbonated soft drink, juices and liquid dairy product sectors.
While the company indicated 100 people are losing their jobs in Arizona and New Jersey, Sidel did not reveal the job loss in Canada when asked.
A listing of job titles in the United States includes about three dozen positions, with the greatest number of employees losing their jobs called operators at 25 and production inspectors/packers totaling 19 jobs.