Sunday, August 24, 2008

Owens-Illinois closes B.C. facility; 3rd Canadian plant closure this year

The world's largest glass bottle maker says it will soon close its B.C. facility, making it the company's third plant closure in Canada this year.

Owens-Illinois Inc. said it will shut its bottle-making plant in Lavington, B.C., by the end of October, putting 300 people out of work.

The Ohio-based company said the closure was necessary as Owens-Illinois works to rationalize its North American business and cut costs.

"This closing was driven by our ongoing global asset utilization process which identified the opportunity to shift our production to other North American facilities, resulting in lower energy consumption and production costs," said Scott Murchison, president of Owens-Illinois's North America glass containers business.

Lavington is a small community in the B.C. Interior, north of Kelowna.

The shuttering of the plant marks the second closing of an Owens-Illinois facility in Canada in the past four weeks, and the third this year.

At the end of July, the company said it would close its Toronto facility by the end of September.

That move will result in the loss of 430 jobs.

In addition, in January, Owens-Illinois shut a bottle-making plant in Scoudouc, N.B.

The company said it will offer assistance to the Lavington employees in finding new work.

Owens-Illinois posted revenue of $2.2 billion US in the second quarter of the year with a profit of $227.5 million. The company has approximately 24,000 workers and 82 facilities around the world.



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