Constar International, a Pennsylvania-based supplier of PET (polyethylene terephthalate) plastic containers, will streamline its operations by closing some plants in three states and taking salaried headcount reductions in its corporate ranks.
The company’s streamlining initiative particularly includes closing its Orlando, Florida and Kansas City, Kansas facilities. On the whole, approximately 250 employees are affected by these actions.
The majority of the restructuring actions are anticipated to be completed by the end of 2011. Upon completing these actions, the company estimates an annual cost savings of approximately $22m.
The Orlando facility is expected to close at the end of this year, while the Kansas City plant is expected to close in the first quarter of 2011.
Constar president and CEO Grant Beard said that in light of volume declines and in an effort to better serve its customers, the company concluded that consolidating plant operations would have a meaningful impact.
Cornstar International said that customers of these plants will be served by its other plants without interruption in supply or service.