BROOMFIELD, Colo., July 29, 2015 /PRNewswire/ -- Ball Corporation [NYSE: BLL] announced today that it will cease production at the company's Bristol, Va., beverage packaging end-making plant during the second quarter of 2016. The plant's capacity will be supplied by other Ball facilities.
Ball expects to record a total after-tax charge of approximately $19 million, primarily for employee severance and benefits, facility shut down costs and other actions. The majority of the charge is expected to be recorded in the third quarter of 2015.
"This action will better align our manufacturing footprint to meet the needs of our customers as we actively manage our overall cost structure," said Daniel W. Fisher, president, North American metal beverage packaging. "Closing a plant is a difficult decision. We compete against plastic, glass and metal packaging in a highly competitive market, and we will continue to maximize value in our existing operations through optimizing our network, as well as expanding into new and growing products, capabilities and markets to meet the needs of our customers."
The Bristol plant opened in 1971 and is one of Ball's oldest North American beverage packaging plants. It produces beverage can ends in a variety of sizes, and employs approximately 230 people. Bristol employees will be provided benefits in accordance with the effects bargaining process, and will be able to apply for open positions within Ball.
About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 14,500 people worldwide and reported 2014 sales of $8.6 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; customer and supplier consolidation, power and supply chain influence; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt; and successful or unsuccessful acquisitions and divestitures, including, with respect to the proposed Rexam PLC acquisition, the effect of the announcement of the acquisition on our business relationships, operating results and business generally; the occurrence of any event or other circumstances that could give rise to the termination of our definitive agreement with Rexam PLC in respect of the acquisition; the outcome of any legal proceedings that may be instituted against us related to the definitive agreement with Rexam PLC; and the failure to satisfy conditions to completion of the acquisition of Rexam PLC, including the receipt of all required regulatory approvals.
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SOURCE Ball Corporation