By Dan Hockensmith | PLASTICS NEWS STAFF
ATLANTA (Nov. 18, 2 p.m. ET) -- Flexible packaging manufacturer Printpack Inc. will close its printing plant in Greensburg, Ind., according to documents filed with the Indiana Department of Workforce Development.
Vice President Terry Harper said in a Nov. 18 telephone interview that the sluggish U.S. economy played a role in the decision, especially the flat bakery market. "The real reason was that we had forecast for some considerable growth in that industry and that didn't materialize. We have a brand-new plant in Bloomington [Ind.] that makes similar products, so that was also a factor. We had to rationalize capacity," Harper said.
The Atlanta-based corporation, which has 20 plants in the U.S. and seven in countries including Mexico, England, Poland and China, filed a layoff notice on Nov. 17 under the Worker Adjustment and Retraining Notification Act
According to the filing, about 230 employees at the Greensburg plant will be terminated beginning Jan. 20 and continuing throughout 2011. The factory makes plastic packaging for the bakery and food industries.
According to Harper, workers at the Greensburg plant were told of the impending closure Nov. 17 and the company made an internal announcement the next day.
Employees in Greensburg will be offered opportunities to transfer to other U.S. Printpack plants, Harper said. Layoffs will occur in waves, with 150 being let go in January; the remaining workers will be phased out later in 2011 and the plant's future determined at that time, he said.
Printpack acquired the plant as part of its $365 million purchase of James River Corp.'s flexible packaging business in 1996.
Source: PlasticsNews.com
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