Alcoa to close down food packaging plant in Kentucky

Alcoa announced March 1 that it will close its Reynolds Food Packaging plastics manufacturing plant in Mt. Vernon, Ky., by the middle of this year. According to the Alcoa, the plant closing, which impacts 115 people, will align production systems in the company’s food-packaging business to better serve customer needs. This action is part of Alcoa’s overall restructuring and repositioning of downstream operations in order to improve returns, announced in the fourth quarter of 2006.

“The decision to close the plant will not impact Reynolds position in the marketplace nor will it affect our ability to serve current customers with the complete line of DelPak and other Food Packaging products,” said Bill Coad, president of Reynolds Food Packaging.

The Mt. Vernon, Ky., plant produces thermoformed and injection molded plastic trays and containers, primarily used in the bakery, deli and foodservice market segments.

“The decision to close this plant was very difficult,” said Ray Newton, Reynolds Food Packaging director of Thermoforming Operations. “Despite the outstanding efforts of our workforce, the costs and demands of the market simply cannot support this facility. This action will better position Reynolds Food Packaging in the marketplace and allow for future growth.”

Production will continue through April until certain lines are transferred to other packaging facilities. A transition plan is being developed.