Tekni-Plex to close Troy, Ohio, PS foam packaging plant by end of 2008, focus on stronger market segments; 139 employees to be affected
Graziela Medina Shepnick
SOMERVILLE, New Jersey
,
October 13, 2008
(press release)
–
Tekni-Plex, Inc. announced today that, as a result of an exhaustive review related to its ongoing efforts to improve business performance across the organization, the Company will close its Dolco Packaging manufacturing facility in Troy, Ohio by the end of December 2008. The plant’s 139 employees have been notified.
Dolco Packaging produces and sells polystyrene foam packaging for perishable foods such as egg cartons and meat trays. Some of the business previously handled by the Troy plant will be transferred to other Tekni-Plex facilities to better serve the company’s customers. “The decision to close the Troy plant reflects our continuing efforts to reshape the company’s manufacturing footprint,” said Paul Young, Chief Executive Officer of Tekni-Plex. “Our employees in Troy worked extremely hard to improve the performance of the plant over a long period of time, but for a variety of reasons, we have not achieved the expected results. Closing this unprofitable facility allows us to focus our attention and investment resources on stronger market segments within the Dolco business portfolio.” About Tekni-Plex, Inc. Tekni-Plex is a global, diversified manufacturer of packaging, packaging products and materials, as well as tubing products. The Company primarily serves the food, healthcare and consumer markets. It has built leadership positions in its core markets, and focuses on vertically integrated production of highly specialized products. Tekni-Plex has operations in the United States, Europe, China, Argentina and Canada. The Company’s operations are aligned under two business segments: Packaging and Tubing Products. Representative product lines in the Packaging segment include foam egg cartons; pharmaceutical blister films; poultry and meat processor trays; closure liners; aerosol and pump packaging components; and foam plates. Representative product lines in the Tubing Products segment include garden and irrigation hose; medical tubing; and aeration hose. The Company also manufactures other products that do not fit in either of these segments, including recycled PET, vinyl compounds and specialty resins.
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