Aug 12 2005
Alcan has announced today changes in two of its packaging business sectors aimed at improving their positions in their respective market segments.
In its Global Pharmaceutical Packaging sector, Alcan will close its Cayey pharmaceutical glass vial operation, based in Puerto Rico, in order to streamline its North American vial manufacturing network. Poor demand for glass vials in the Puerto Rican market is the main reason Alcan is taking this measure.
As part of the refocusing of its Food Packaging sector, Alcan has completed the sale of its Pet Plas Packaging Ltd. food plastic bottles company to Esterform Packaging Limited, based in Tenbury Wells (Worcestershire), United Kingdom.
"Alcan regularly reviews its business portfolio in order to ensure its long-term viability. The difficult decision to close our Cayey Tubing facility was made following a thorough review of all our business options", said Christel Bories, President and CEO, Alcan Packaging. "As for the sale of Pet Plas food plastic bottles, we believe that Pet Plas’ customer base will benefit from Esterform’s strategic commitment to serve the region’s juice and beverage markets and from the combined technological know-how of the two companies. It’s a good match."
The closure of the Cayey facility, which affects 62 people, should occur by October 9, 2005. The plant’s production lines will be redistributed to other glass tubing plants in North America. Plans have been made to ensure a smooth transition for Alcan customers. A variety of support programs have been developed to assist affected employees during this period. This closure does not affect the plastics packaging operations also located in Cayey, Puerto Rico.
Esterform Packaging Limited specializes in blow-molded and injection-molded plastic bottles primarily for beverages including juice, soft drinks, water and dairy. Pet Plas, a manufacturer of custom PET plastic bottles and preforms, employs 90 people and operates one plant in Leeds, England. The unit had 2004 sales of US$50.5 million.
http://www.alcan.com