05 December 2007
Rexam, a global leader in consumer packaging, today announced the closure of two plastics manufacturing plants in the US. The plants affected are in West Lafayette, Indiana, and Rossville, Georgia. The closures follow Rexam's acquisition of O-I Plastics and are in line with the strategy to optimize manufacturing capabilities and the utilization of operations in North America.
The plant closure in West Lafayette is currently scheduled for the third quarter of 2008. The plant, which began operation in 1978, employs about 60 people and manufactures medical diagnostic products. The plant's production will be absorbed by other Rexam manufacturing facilities with no interruption in customer shipments.
All employees affected by the plant closures will receive a competitive severance package and will be provided outplacement assistance.
The plant closure in Rossville is currently scheduled for the fourth quarter 2008. The Rossville plant, which began operations in 1982, employs about 85 people and manufactures diagnostic healthcare packaging. Production will be absorbed by a number of Rexam healthcare packaging plants throughout the US. There will be no interruption in customer shipments.
These facilities are part of Rexam's global plastics business which operates 65 plants and employs approximately 16,000 people around the world, serving the healthcare, closures and personal care markets.
"This is part of our strategy to establish operational excellence and align our manufacturing capabilities across our plastics business in the US and the world," said Graham Chipchase, Group Director, Rexam Plastic Packaging. "It will allow us to improve the overall utilization of our existing operations, create synergies and continue our focus on delivering world-class quality products and services to customers."