Intertape Polymer to close New Brunswick plant (October 02, 2002)
Packaging manufacturer Intertape Polymer Group will close a plant in Edmundston, NB, that the CEO says can't compet...
October 2, 2002 by Canadian Plastics
Packaging manufacturer Intertape Polymer Group will close a plant in Edmundston, NB, that the CEO says can’t compete with Third World producers. The Edmundston plant, and another in Rayne, LA, that will also be closed, produce flexible intermediate bulk containers (FIBCs). Their production will be moved to an IPG factory in Piedras Negras, Mexico.
"It is extremely difficult to close operations," said Intertape CEO Melbourne Yull. "Unfortunately, FIBCs are labor-intensive, and global production in Third World countries have made North American-produced products uncompetitive."
The closures are to be completed by late November. About 80 employees of the Edmundston facility will lose their jobs. Another 10 layoffs are expected at the Louisiana plant. The closures will save IPG an estimated US$3 million per year.
The company will also lay off about 35 employees from various sales and administrative positions.
Yull said the cost-cutting moves were triggered by a flat near-term revenue outlook.