BWAY Holding Plans to Close Metal Packaging Plant; Sees $6.8M in Restructuring Charges

BWAY Holding Co., a supplier of metal and plastic containers, said Friday it plans to close its Franklin Park, Ill., metal packaging manufacturing plant by Oct. 31 as part of an ongoing restructuring effort.

BWAY said it will take $6.8 million in pretax restructuring charges related to the closing, with $4.3 million to be taken in fiscal 2008 and $2.5 million in 2009. The company also said it will take $2 million in depreciation expenses related to the discontinuation of certain machinery at the plant.

The company expects to spend $900,000 in fiscal 2008 and $800,000 in fiscal 2009 to rebuild and install some of the plant's machinery in other plants.

Total costs related to the plant closing, including tax benefits and relocation expenses, are estimated at $5.8 million.

BWAY expects $3 million in yearly pretax savings from the closing, beginning next year.

Production from the plant, one of 10 metal packaging plants the company operates in the U.S., will shift mostly to facilities in Cincinnati and Trenton, N.J.

The company said about 90 employees will be affected by the closing. BWAY has about 3,000 employees worldwide.

Shares fell 23 cents, or 2.2 percent, to $10.07 in midday trading.