Constar Focuses on Specialty Plastic Packaging
TREVOSE, Pa., Dec 21, 2012 (BUSINESS WIRE) --
Copyright Business Wire 2012
Constar International LLC, a leading global producer of plastic
containers for food and beverages, which has previously announced its
intention to focus on plastic packaging for technologically advanced and
specialty applications, announces actions that will reduce its exposure
to the commodity carbonated soft drink (CSD) market. The high volume CSD
bottle market, in which Constar was a pioneer, is rapidly shifting to
self-manufacturing driven by machine technology available to CSD
fillers. "Now a private company with financial sponsors who are willing
to move decisively, we are changing both our scale and our focus," said
Andre Laus, CEO, "We are a company with leading edge technologies, but
we have been too highly concentrated in commodity business. We need to
direct more of our effort and resources to targeted growth opportunities
in packaging markets for hotfill beverage, food, barrier, short-run and
specialty products, and new applications."
"With a large contract to supply commodity CSD products expiring at the
end of 2012, we had to choose between devoting more resources to low
value adding activity, or reducing that activity significantly and
sharpening focus where we add greater value", Andre Laus continued.
Effective January 1, 2013, Constar's largest supply contract for CSD
plastic packaging will expire without renewal and Constar will
consequently reduce operations in the two plant facilities that were
dedicated to supply under that contract, Jackson, MS, and Havre de
Grace, MD. The reduced operations will have no effect on production for
any of Constar's other business.
The Jackson, MS plant, which is an injection molding facility, will
close at the end of January 2013. Approximately 40 Jackson employees
will separate from the company between now and the end of January. The
Havre de Grace, MD plant, which is comprised of a two building complex
with a full range of injection and specialty blow molding operations,
will concentrate operations into the larger of the two buildings.
Approximately 40 employees in the Havre de Grace complex will be
affected by reductions between now and the end of March 2013. At both
locations, the company is meeting with the affected employees and
communicating a program of transitional support that includes severance
benefits and outplacement assistance.
"The markets we serve are rapidly changing and we must change too,"
Andre Laus noted, "Many of the assets that were formerly dedicated to
supply of commodity CSD product can be retooled to support our growth in
specialty markets, but we will also continue to invest in new machines
and technologies that position us to meet the evolving plastic packaging
needs of food and beverage customers."
Trevose, Penn.-based Constar International LLC, is a leading global
producer and supplier of plastic bottles, jars and preforms for food and
beverages. The Company provides full-service packaging solutions, from
product design and engineering, to ongoing customer support and material
licensing agreements. Its customers include many of the world's leading
branded consumer products companies. Visit www.constar.net.
SOURCE: Constar International LLC