Ball to Close Brampton, Ontario, Plastic Packaging Plant
June 26 2008 - 9:30AM
PR Newswire (US)
BROOMFIELD, Colo., June 26 /PRNewswire-FirstCall/ -- Ball
Corporation (NYSE:BLL) announced today that it plans to close its
plastic packaging manufacturing plant in Brampton, Ontario. The
closed operations will be consolidated into the company's other
plastic packaging manufacturing facilities in North America. The
closure is expected to occur by the end of the third quarter of
2008. The action will result in an after-tax charge of
approximately $5 million, of which approximately $2 million will be
recorded in the second quarter of 2008. The remaining costs will be
recorded in the second half of 2008 as they are incurred. The
closure is expected to result in annual, fixed-cost savings of
approximately $4 million beginning in 2009. The Brampton plant
manufactures polypropylene bottles for foods. Ball acquired the
facility in 2006 with the company's acquisition of certain North
American plastic bottle container assets of Alcan Packaging.
Brampton employees will be provided severance and outplacement
services. The plant employs approximately 90 people. Ball
Corporation is a supplier of high-quality metal and plastic
packaging for beverage, food and household products customers, and
of aerospace and other technologies and services, primarily for the
U.S. government. Ball Corporation and its subsidiaries employ more
than 15,500 people worldwide and reported 2007 sales of
approximately $7.4 billion. Forward-Looking Statements This release
contains "forward-looking" statements concerning future events and
financial performance. Words such as "expects," "anticipates,"
"estimates" and similar expressions are intended to 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 99.2
in our Form 10-K, which are available at our Web site and at
http://www.sec.gov/. Factors that might affect our packaging
segments include fluctuation in product demand and preferences;
availability and cost of raw materials, including recent
significant increases in resin, steel, aluminum and energy costs,
and the ability to pass such increases on to customers; competitive
packaging availability, pricing and substitution; changes in
climate and weather; crop yields; competitive activity; failure to
achieve anticipated productivity improvements or production cost
reductions, including our beverage can end project; mandatory
deposit or other restrictive packaging laws; changes in major
customer or supplier contracts or loss of a major customer or
supplier; and changes in foreign exchange rates, tax rates and
activities of foreign subsidiaries. Factors that might affect our
aerospace segment include: funding, authorization, availability and
returns of government and commercial contracts; and delays,
extensions and technical uncertainties affecting segment contracts.
Factors that might affect the company as a whole include those
listed plus: accounting changes; changes in senior management;
successful or unsuccessful acquisitions, joint ventures or
divestitures; integration of recently acquired businesses;
regulatory action or laws including tax, environmental, health and
workplace safety, including in respect of chemicals or substances
used in raw materials or in the manufacturing process; governmental
investigations; technological developments and innovations;
goodwill impairment; antitrust, patent and other litigation;
strikes; labor cost changes; rates of return projected and earned
on assets of the company's defined benefit retirement plans;
pension changes; reduced cash flow; interest rates affecting our
debt; and changes to unaudited results due to statutory audits or
other effects. DATASOURCE: Ball Corporation CONTACT: Investors, Ann
T. Scott, +1-303-460-3537, , or Media, Scott McCarty,
+1-303-460-2103, , both of Ball Corporation Web site:
http://www.ball.com/
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