As a consequence, the company says it will close down the operation of its sight in Pointe Claire, Quebec, by the end of this year, a logical next step following its decision back in 2010 to ‘de-emphasize’ the production of pre-forms.
Currently the company produces a very wide ranging portfolio of custom designed plastic bottles, which serve the personal care, food, pharmaceutical and household categories, bringing annual sales of approximately $230m.
Job losses and restructuring charges
The Missouri-based company says that the closure of the facility will lead to the loss of 65 employees, but, counterbalancing this, 30 new jobs will be created at the company’s other locations, as equipment and associated jobs are relocated accordingly.
The relocation is also expected to account for $6.0m in associated restructuring charges, which will include $1.8m charge related to the removal and reinstallation of equipment and the remainder relating to cash payments for employee severance.
The company expects that the restructuring will improve its EBITDA by more than $2m in 2014. For the 2012 fiscal year the company reported a $30m adjusted EBITDA, its fifth consecutive year of growth.
High costs and geogrpahy contributed to closure
“This was a very difficult decision and our team has worked hard over the past three years to explore other options with regard to products at the Pt. Claire site,” said Pretium CEO George Abd.
“Unfortunately its geographic location and high cost structure combined with its mix of equipment left us with limited options.”
In a press statement the company also emphasized that the decision to close the pre-forming facility in Quebec would not affect its other operations in Ville St. Laurence, where it manufactures personal care, food and pharmaceutical specialty bottles.