Tredegar Film Products, an arm of plastic films and aluminium extrusions firm Tredegar Corporation, will cut down workforce at its manufacturing unit in Lake Zurich, Illinois, in the US.
The plant, which provides employment to 134 people, is likely to undergo reduction in headcount during the next two years, as the products manufactured in that plant will be transferred to other film products units of the firm.
Tredegar Film Products president Mary Jane Hellyar said: "This was a difficult decision to make, and we regret the impact that it will have on our employees in Lake Zurich; in particular, I want to recognize their dedication and significant contributions to Films.
"While our intent has been to generate sufficient new business to maintain all of our domestic plants, the reality is that we see most of our growth coming from markets outside of North America, and we expect this trend to continue."
Tredegar Film Products makes plastic films, elastics, and laminate materials to cater to personal care, electronic display, flexible packaging, lighting and other specialty film markets. It has its global R&D centers in North America, Europe, Asia, and South America.
"We have made significant capacity investments in developing markets to better meet our customers’ demands for local supply. As we reduce Films’ footprint in the US, we will be transferring most of Lake Zurich’s volume to our other manufacturing facilities over the next two years. Lake Zurich’s capability for elastic laminates and certain elastics films will remain operational," Hellyar added.
Tredegar Corporation, which has 2,700 employees in its units across North America, South America, Europe, and Asia, posted sales worth $952m last year.