The Ball Corporation has announced it is to cease production of 12-ounce beverage cans at two of its North American manufacturing plants. The company will permanently close its facilities at Columbus, Ohio and Gainesville, Florida at the end of the year, at the same time reducing its overall can end production capacity.
However, the company says it will increase its specialty beverage can capacity in North America, citing a shift in demand away from the standard 12-ounce size.
“These actions are in response to a loss of standard 12-ounce beverage can volume beginning 1 January, 2013, as well as continued growth in specialty beverage can packaging, which is an increasingly important part of our business,” says Raymond J. Seabrook, Ball Corporation executive vice president and chief operating officer, global packaging.
“We will continue to actively manage our overall cost structure, pursue new specialty can opportunities and better position our manufacturing footprint to meet changing market conditions to offset the impact of the volume loss.”
Ball expects to record a “total after-tax charge of approximately $30 million”, primarily for employee severance and benefits, facility shut down costs and other actions.
Ball’s Columbus plant currently employs about 110 people, operating two of four existing lines that produce standard 12-ounce cans, while the Gainesville plant employs approximately 125 people and produces several different beverage can ends for standard can sizes.
