A New York State factory that molds polypropylene containers and closures is shutting down, a move that will cost 90 people their jobs.
IntraPac International LLC, which is owned by the Oncap private equity firm, expects to close its Plattsburgh, N.Y., location within 45 days.
"We have a facility in Mebane, N.C., They had capacity and our business can fit within that capacity. So we're simply consolidating our footprint," Plant Manager Larry Brand said in a Sept. 13 interview.
"It's unfortunate that we're closing a 54-year-old company, but at the same time, it probably couldn't have happened at a better time in the Plattsburgh area," he said.
While there are some open positions in North Carolina that company employees could seek, the plant manager does not expect that to be a popular move.
"I don't think a lot of people would. Plattsburgh is a small, local town. The unemployment rate is extremely low in Plattsburgh right now. I've been fielding inquiries from local manufacturers nonstop looking for people," he said.
IntraPac filed the necessary federal paperwork needed when a facility of more than 50 people shuts down. Those federal rules require a 60-day notice of such closures, but employees were instead paid for that time. They also are receiving severance packages, the plant manager said.
IntraPac expects to recall about 30 people to finish up work that's in progress and then decommission the New York location.
Oncap purchased IntraPac less than two years ago. The rigid packaging maker produces items such as deodorant sticks, jars, vials, spouts, bottles, tubes and metered dose inhalers.
At the time of the sale to Oncap by funds managed by CI Capital Partners LLC, IntraPac had more than 800 employees at nine manufacturing sites in the United States, Canada and Costa Rica. Oncap is the middle-market private equity unit of Toronto-based Onex.
Oncap also has an investment in equipment maker Davis-Standard LLC.
"The leadership team recognizes that these changes will have a significant impact on its 90 dedicated employees and their families, and we are offering transition services to aid employees in their search for new employment," the company said in a separate statement.
"This will be a smooth transition and there will be no adverse effect to our customers. The company expects this plant closure to improve its market competitiveness and better position its jars and closures business for long term growth," the statement said.
As for Brand, he said he expects to stay in Plattsburgh after the plant closes. "This is a good place for me to be," he said.