Lack of a key raw material is leading Pregis Corp. to close a plastic sheet foam plant in Kentucky in a move that will eliminate 79 jobs.
The plant in Wurtland, Ky., makes Microfoam-brand PP sheet foam. The plant is expected to close by the end of the year, company officials said in a WARN (Worker Adjustment and Retraining Notification) filed with the state.
In a statement sent to Plastics News, officials with Pregis in Deerfield, Ill., said that "the regretful decision to close … is due to the discontinuation of a key ingredient" needed to make the sheet foam, which is the only product made at the site. The company did not specify what the ingredient was.
"Despite exhaustive efforts to find a suitable replacement for the manufacturing component, we have been unable to do so, leaving us with no choice but to cease manufacturing operations for the Microfoam product line," the statement said.
Officials added that the decision "in no way reflects the performance of our Wurtland employees."