Ball to Begin Discussions Regarding Possible Closure of Wallkill, New York Beverage Packaging Plant

Rhea-AI Summary

Ball Corporation (NYSE: BALL) has informed its employees and union about a potential closure of its Wallkill, New York plant, which has been in operation since 1972. The decision comes as the company evaluates difficulties in expanding the facility due to space and equipment constraints. Ball aims to transition unique can sizes produced at Wallkill to other facilities within its extensive network to better serve its customers. The closure discussions reflect Ball's strategy to adapt to changing customer needs while maximizing production efficiency across its 20 metal beverage container plants.

Positive

• Ball can adapt production of unique can sizes to other facilities, potentially increasing efficiency.
• The extensive plant network allows Ball to respond to customer demands effectively.

Negative

• Closure could impact employees and local economy in Wallkill, New York.
• The decision indicates challenges in facility upgrades and expansion.

WESTMINSTER, Colo., March 15, 2023 /PRNewswire/ -- Ball Corporation (NYSE: BALL) has notified its employees and the union, in accordance with the collective bargaining agreement (CBA), about the potential closure of the Wallkill, New York, plant.  

Ball is evaluating the Wallkill facility, which opened in 1972. The facility produces a number of unique can sizes where Ball is the sole supplier. Space, land and equipment limitations make expansion and upgrades to this facility difficult. To increase production and enable growth of contracted customers, Ball is exploring closure of the Wallkill plant and supplying the unique sizes from other facilities that can produce them.  

"Contemplating a plant closure is never easy as it impacts our people. Because of our extensive plant network, we have the ability to modify existing lines to produce these unique sizes," said Kathleen Pitre, president, Beverage Packaging North & Central America. "We are exploring the best way to match the growing and changing needs of our contracted customers with our extensive plant footprint."  

Ball can leverage its system of 20 metal beverage container plants across the region to serve its multiple customers with the most sustainable packaging solution in the beverage supply chain. 

About Ball Corporation

Ball Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 21,000 people worldwide and reported 2022 net sales of $15.35 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.

Forward-Looking Statements 

This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "believes," and similar expressions typically identify forward-looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in Ball's Form 10-K, which are available on Ball's website and at www.sec.gov. Additional factors that might affect: a) Ball's packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; footprint adjustments and other manufacturing changes, including the startup of new facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on Ball's supply chain and its ability to operate in Europe, the Middle East and Africa regions generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and orders affecting goods produced by Ball or in its supply chain, including imported raw materials; b) Ball's aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) Ball as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, environmental, social and governance reporting, competition, environmental, health and workplace safety, including U.S. Federal Drug Administration and other actions or public concerns affecting products filled in Ball's containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of Ball's defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies, including policies, orders, and actions related to COVID-19; reduced cash flow; interest rates affecting Ball's debt; and successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball's operating results and business generally. 

 

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SOURCE Ball Corporation

FAQ

What is the status of Ball Corporation's Wallkill plant as of March 2023?

Ball Corporation is discussing a potential closure of its Wallkill, New York plant due to expansion challenges.

Why is Ball Corporation considering closing the Wallkill facility?

The Wallkill facility faces space, land, and equipment limitations that hinder expansion and upgrades.

What impact will the potential closure of the Wallkill plant have on Ball Corporation?

The closure may affect employees and the local economy, but Ball plans to shift production to other facilities.

How many plants does Ball Corporation have?

Ball Corporation operates 20 metal beverage container plants across the region.

What year did the Wallkill plant open?

The Wallkill plant has been operational since 1972.