MWV closes cosmetics packaging plant in Ohio

By Guy Montague-Jones

- Last updated on GMT

Related tags Manufacturing

MeadWestvaco (MWV) is closing a cosmetics packaging plant in Washington Court House, Ohio, as part of a comprehensive cost cutting program.

Between 12 and 14 factories will be closed and 2,000 jobs, 10 percent of MWV’s workforce, will go as part of restructuring plans that are expected to generate savings of $125m in 2009.

Plant produces beauty dispensers

The Washington Court House facility currently manufactures dispensers for the personal care and beauty industries but operations are to be wound down with the loss of 278 jobs.

By the end of 2009, production will be transferred to a plant in San Luis Potosi, Mexico, and only a small component manufacturing presence will be maintained at Washington Court House.

MWV said the Mexican factory has more advanced production equipment and processes that enable the company to manufacture at lower unit costs and change production levels with minimum disruption.

Cost cutting strategy

In October last year, the packaging firm closed a manufacturing plant serving the cosmetics industry in Drunen, the Netherlands, as its cost cutting plans got underway.

MWV spokesperson Alison von Puschendorf told “We introduced a cost management strategy last year and have since accelerated these steps in light of economic events.”

On the announcement earlier this month that the company would be emboldening its cost cutting strategy, John A. Luke, chairman and CEO said: “We have been taking aggressive steps over the past several months to help ensure we perform in today’s uncertain environment, and are poised to take advantage of the stronger, more stable periods that are sure to come.”

Alison von Puschendorf said the closure of Washington Court House would have “little if any effect” on consumers in the cosmetics industry. MWV will announce its earnings results for the fourth quarter of 2008 tomorrow and will release details of further plant closures over the coming months.

Related topics Packaging & Design

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