11.22.13
CCL Industries Inc. announced that it plans to permanently close its Canadian aerosol manufacturing operation commencing in the first half of 2014 and completing no later than mid-2015.
"It is with great regret that we are announcing this news. Our operation in Ontario now exports its entire output into the United States; distance from key customers and the step change rise of the Canadian dollar over the last decade combined to significantly impede competitiveness,” said Geoffrey T. Martin, president and CEO of CCL Industries. “The plant has been unprofitable since 2009 and posted sizable losses during the economic crisis years. Although results improved in 2012 and 2013, the operation continues to make losses; consequently we feel it is now time to make this difficult decision.
"In addition to appropriate severance and other benefits, we will do our very best to help the 170 employees at the site develop their personal transition plans,” Martin added. “Many of them have long tenure with CCL so early notice of the closure gives reasonable time to consider options. These will include outplacement assistance embracing, where possible, international transfers within CCL Container and domestic opportunities at our CCL Label and Avery business units as we simultaneously expand their manufacturing operations in both Toronto and Montreal.
"CCL Container will consolidate the sales volume from the Canadian plant into its existing operations in the United States and Mexico, investing approximately $25 million in required capacity and infrastructure additions at its Hermitage, PA and Guanajuato sites over 2014 and 2015,” Martin continued.
"It is with great regret that we are announcing this news. Our operation in Ontario now exports its entire output into the United States; distance from key customers and the step change rise of the Canadian dollar over the last decade combined to significantly impede competitiveness,” said Geoffrey T. Martin, president and CEO of CCL Industries. “The plant has been unprofitable since 2009 and posted sizable losses during the economic crisis years. Although results improved in 2012 and 2013, the operation continues to make losses; consequently we feel it is now time to make this difficult decision.
"In addition to appropriate severance and other benefits, we will do our very best to help the 170 employees at the site develop their personal transition plans,” Martin added. “Many of them have long tenure with CCL so early notice of the closure gives reasonable time to consider options. These will include outplacement assistance embracing, where possible, international transfers within CCL Container and domestic opportunities at our CCL Label and Avery business units as we simultaneously expand their manufacturing operations in both Toronto and Montreal.
"CCL Container will consolidate the sales volume from the Canadian plant into its existing operations in the United States and Mexico, investing approximately $25 million in required capacity and infrastructure additions at its Hermitage, PA and Guanajuato sites over 2014 and 2015,” Martin continued.