Portola Packaging has announced an investment of $12m in its Kingsport, Tennessee and Tolleson, Arizona facilities in the US to accommodate increasing market demand for its hot-fill and aseptic beverage closures.
The latest investment, which follows a previous substantial expenditure in compression and injection molding capacity made over the past three years, also caters to the increased dairy business market share.
According to the plastic closures and containers manufacturer, some of the new capital improvements are already underway, with completion expected by the end of the third quarter of 2013.
The company will make the investment to purchase additional compression and injection molding equipment as well as upgrade existing production line.
Infrastructure replacements and upgrades will also be done, which include process water capacity, hvac/dehumidification, electric power service and distribution, resin delivery.
Portola Packaging president and chief executive officer Kevin Kwilinski said the company's focus on lean manufacturing, reliability-centered maintenance, and product rationalization has allowed it to increase unit throughput per employee by 43% over the past four years.
"After the additional capacity is fully operational, we expect to exceed a 75% improvement for the same metric," Kwilinski said.
The company has also decided to shrink off production at its Batavia, Illinois facility in the middle of April 2013, and shut it down completely no later than August 2013.
"After extensive analysis and careful thought, we came to the conclusion that closing this facility and upgrading production at our other two plants was the best decision for our customers and company," Kwilinski added.
