Owens-Illinois (O-I) has confirmed that on 1st July 2010 it will close its Clarion glass container plant in Pennsylvania, USA.
President of O-I North America, Miguel Escobar, said the loss of volume associated with supply agreements for some customer locations prompted the decision to close the facility, which is said to be one of the company’s highest costing plants in North America.
“In 2009 we renegotiated many customer and supplier contracts that were set to expire,” said Mr Escobar. “It was critical that the terms of all new contracts meet or financial and strategic goals. We were successful on many fronts, but not all. As a result, we have experienced a volume loss that impacts our North American operations,” he continued.
The Clarion plant employs approximately 420 people, to whom O-I will offer support services. “While we regret the impact this has on our Clarion employees, it is imperative that we take such actions to ensure the long-term health of the company,” said Mr Escobar.
