Silgan to close Ohio blowmolding facility

will cease operations at its Port Clinton, OH blowmolding facility, with the site to be completely shut down by the third quarter. Alan Koblin, Silgan Plastics president, said the move will improve the company’s flexibility and increase cost competitiveness. Existing business and equipment will be relocated to other Silgan Plastics plants in the Midwest. Silgan acquired the Port Clinton, OH facility in 1989. The company will offer transition benefits and other assistance to the approximately 150 affected employees.

Founded in 1987 by Philip Silver and Greg Horrigan, who are now co-chairmen of the board, Silgan Plastics was created by the purchase of the Monsanto Company’s plastic container business. Two years later a series of acquisitions, including the Port Clinton site that will be closed, grew the business. In that year, the company purchased the plastic container businesses of Aim Packaging Inc., Express Plastic Containers Ltd., and the Amoco Container Co. Silgan Plastics has 21 manufacturing facilities in the U.S. and Canada, including blowmolding operations for containers and injection molding plants for closures.

In 2009, Silgan’s plastic container business saw sales drop by $110.4 million to $541.5 million, a decrease of 16.9%. In parent company Silgan Holdings’ annual report, the decrease was attributed to lower average selling prices resulting from the pass through of lower raw material costs, as well as a decline in unit volumes and unfavorable foreign currency translation. Income from plastic container operations was $31.3 million for the year, a decrease of $12.5 million. Tony Allott, Silgan Holding president and CEO, said at the time, “Our plastic container business was the most impacted by the recession but showed improvement as the year progressed,” adding that the company expected a modest market recovery in 2010 and that it would place continued focus on cost controls and manufacturing efficiencies. —[email protected]