Plastic packaging systems manufacturer Pretium Packaging has announced plans to cease operations at its site in Pointe Claire, Quebec, Canada by the end of December 2013.
The company's latest move is tied to its decision in 2010 to de-emphasize the sale of preforms as a product category and to concentrate on its development, design and investment on growth in its core product line of plastic bottles.
The company decided to cease operations as the Pointe Claire site, which was a preform manufacturing site earlier, did not fit within its current and long term market strategy.
Pretium further expects to record a restructuring charge of about $6m. The result of the plan is expected to improve the company's adjusted EBITDA by more than $2m in fiscal 2014.
Pretium Packaging CEO George Abd said, "This decision will provide immediate benefit to our customers and will strengthen the Company providing growth opportunities at our remaining sites."
Following the plant closure, about 65 employees will be affected, while 30 new positions will be created at the company's other locations as equipment and work is transitioned to those sites.
According to the company, the decision to terminate operations in Pointe Claire is unrelated to and will have no effect on its other site in Quebec, in Ville St. Laurent, which manufactures specialty bottles for the pharmaceutical, food and personal care markets.
