On Tuesday, can maker-cum-aerospace supplier Ball (NYSE:BLL) announced plans to shutter its Elgin, Ill., food-can and aerosol-can manufacturing plant by December, shifting production to other Ball factories. The company described the move as aimed at reducing overall production capacity, which should improve utilization at the factories to which production is shifted.
The 245 workers employed at the Elgin plant will be able to apply for positions at the plants to which production will be shifted. Otherwise, the company says they will be "provided benefits, including outplacement and severance pay, in accordance with company policies and the effects bargaining process."
As for Ball itself, the company advised that it will be taking an after-tax charge to earnings of approximately $21 million, most of which will be incurred in 2013.
Ball shares closed down 0.6% at $44.89 Tuesday ahead of the announcement but more than recovered their losses in after-hours trading, after news of the closure came out.