CCL Industries to Close Canadian Aerosol Plant

 

TORONTO, ON, CANADA | CCL Industries, a supplier of specialty label and packaging solutions for global corporations, small businesses, and consumers, plans to permanently close its Canadian aerosol manufacturing operation commencing in the first half of 2014 and completing no later than mid-2015.

Geoffrey T. Martin, president and CEO of CCL Industries, says, "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. 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."

Martin adds, "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, Pennsylvania, and Guanajuato sites over 2014 and 2015. This includes the previously announced new aerosol production line planned for installation in mid-2014.

"We firmly believe this decision was essential to optimize the CCL Container supply chain footprint and cost position to best service our important Home & Personal Care customers, all of which are now located in the United States and Mexico."

Martin notes that the company will do its best to help employees from the aerosol plant transition to other jobs, where possible to CCL Container and domestic opportunities at CCL Label and Avery business units as the company simultaneously expands manufacturing operations in both Toronto and Montreal.

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