Intertape Polymer to close New Brunswick plant (November 01, 2002)
Canadian Plastics
Packaging manufacturer Intertape Polymer Group will close a plant in Edmunston, NB, that the CEO says can't compete with Third World producers. The Edmunston plant, and another in Rayne, LA, that will...
Packaging manufacturer Intertape Polymer Group will close a plant in Edmunston, NB, that the CEO says can’t compete with Third World producers. The Edmunston 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 Edmunston facility will lose their jobs. 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.
