Ball Shutters Illinois Factory
On Tuesday, can maker-cum-aerospace supplier Ballannounced plans to shutter its Elgin, Ill., food-can and aerosol-can manufacturing plant by December, shifting production to other Ball factories. The company described the move as aimed at reducing overall production capacity, which should improve utilization at the factories to which production is shifted.
The 245 workers employed at the Elgin plant will be able to apply for positions at the plants to which production will be shifted. Otherwise, the company says they will be "provided benefits, including outplacement and severance pay, in accordance with company policies and the effects bargaining process."
As for Ball itself, the company advised that it will be taking an after-tax charge to earnings of approximately $21 million, most of which will be incurred in 2013.
Ball shares closed down 0.6% at $44.89 Tuesday ahead of the announcement but more than recovered their losses in after-hours trading, after news of the closure came out.
The article Ball Shutters Illinois Factory originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.