PRESS RELEASE RE TWO PLANT CLOSINGS
Published on April 13, 2009
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Exhibit 99.1
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 |
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News
Release
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For
Immediate Release
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http://www.ball.com
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Investor
Contact:
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Ann
T. Scott
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303-460-3537,
ascott@ball.com
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Media
Contact:
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Scott
McCarty
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303-460-2103,
smccarty@ball.com
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Ball
to Cease Manufacturing Operations at Two PET Bottle Packaging
Plants
BROOMFIELD,
Colo., April 8, 2009—Ball Corporation [NYSE:BLL] today announced that it will
permanently cease manufacturing operations at polyethylene terephthalate (PET)
plastic packaging plants in Baldwinsville, N.Y., and Watertown, Wis., and supply
customers of those plants from larger Ball facilities.
As a
result, an after-tax charge of approximately $14 million will be recorded
in the company’s second quarter results. Cost savings associated with
these actions are expected to be approximately $12 million annually beginning in
2010.
“Baldwinsville
and Watertown are the smallest PET bottle manufacturing plants in our system,”
said John A. Hayes, executive vice president and chief operating officer. “With
the industry slowdown of demand for monolayer PET containers, it is important
that we continue to focus on ensuring our cost base is competitive.
Consolidating production capacity into larger, more efficient plants is
necessary to better balance our supply with market demand and to improve the
performance of our plastic packaging business.”
The
Baldwinsville plant opened in 1996 and operates seven production lines capable
of making approximately 1 billion recyclable PET bottles annually. It employs
113 people. The plant is scheduled to cease manufacturing operations by July 7,
subject to customer requirements.
The
Watertown plant operates four production lines with an annual capacity of
approximately 250 million recyclable PET bottles and employs 52 people. Ball
acquired the plant from Wis-Pak, Inc., in 2001. It is scheduled to cease
manufacturing operations by June 7, subject to customer
requirements.
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Ball
Corporation
10 Longs
Peak Drive · P.O. Box
5000 · Broomfield, CO
80021
Ball
Corporation – 2
Ball
operates plastic packaging plants in Chino, Calif.; Atlanta, Ga.; Batavia, Ill.;
Ames, Iowa; Bellevue, Ohio; and Delran, N.J.
Ball
Corporation is a supplier of high-quality metal and plastic packaging for
beverage, food and household products customers, and of aerospace and other
technologies and services, primarily for the U.S. government. Ball Corporation
and its subsidiaries employ more than 14,000 people worldwide and reported 2008
sales of approximately $7.6 billion. For the latest Ball news and for other
company information, please visit www.ball.com.
Forward-Looking
Statements
This
release contains “forward-looking” statements
concerning future events and financial performance. Words such as “expects,”
“anticipates,” “estimates” and similar expressions are intended to identify
forward-looking statements. Such statements are subject to risks and
uncertainties which could cause actual results to differ materially from those
expressed or implied. The company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. Key risks and uncertainties are summarized in
filings with the Securities and Exchange Commission, including Exhibit 99.2 in
our Form 10-K, which are available at our Web site and at www.sec.gov. Factors
that might affect our packaging segments include fluctuation in product demand
and preferences; availability and cost of raw materials; competitive packaging
availability, pricing and substitution; changes in climate and weather; crop
yields; competitive activity; failure to achieve anticipated productivity
improvements or production cost reductions, including our beverage can end
project; mandatory deposit or other restrictive packaging laws; changes in major
customer or supplier contracts or loss of a major customer or supplier; and
changes in foreign exchange rates, tax rates and activities of foreign
subsidiaries. Factors that might affect our aerospace segment include: funding,
authorization, availability and returns of government and commercial contracts;
and delays, extensions and technical uncertainties affecting segment contracts.
Factors that might affect the company as a whole include those listed plus:
accounting changes; changes in senior management; the current global credit
squeeze and its effects on liquidity, credit risk, asset values and the economy;
successful or unsuccessful acquisitions, joint
ventures or divestitures; integration of recently acquired businesses;
regulatory action or laws including tax, environmental, health and workplace
safety, including in respect of chemicals or substances used in raw materials or
in the manufacturing process; governmental investigations; technological
developments and innovations; goodwill impairment; antitrust, patent and other
litigation; strikes; labor cost changes; rates of return projected and earned on
assets of the company's defined benefit retirement plans; pension changes;
reduced cash flow; interest rates affecting our debt; and changes to unaudited
results due to statutory audits or other effects.
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Ball
Corporation
10 Longs
Peak Drive · P.O. Box
5000 · Broomfield, CO
80021