Packaging supplier Ball has announced its decision to cease production at the company's Elgin, Illinois food and aerosol packaging manufacturing plant in the US in December 2013.
According to the US-based company, its other facilities will supply for the customers of the Elgin plant which produces aerosol and specialty steel cans as well as flat steel sheet used by other Ball food and household products packaging facilities.
For the closure, the company is expected to report an after-tax charge of about $21m, the majority of which will be recorded in 2013.
In accordance with company policies and the effects bargaining process the plant's 245 employees will be provided benefits including outplacement and severance pay.
Ball global metal food and household products packaging business chief operating officer Michael Feldser said, "Closing Elgin reduces capacity and, coupled with other changes within our manufacturing system, will enable us to maximize value in our existing business by supplying customers from a consolidated asset base and redistributing some manufacturing operations within our system."
