Key Plastics said it would close its operations in Hartford City, Indiana consolidating the business into its other North American manufacturing sites during 2011.
The consolidation is necessary added the company to “optimise” excess capacity generated by efficiency improvements in the past 18 months.
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Revenues for the company have increased by 33% from 2009 to 2010 with US based operations increasing by 47% during the same period.
“The decision to consolidate a manufacturing site is always difficult,” said CEO Terry Gohl. “In this case, the action will result in an efficient and well-utilised manufacturing footprint in our North American operations and presented a compelling business case which could not be overlooked.
“As we look to grow our business we commit ourselves atto the continuous improvement of our products and our cost structure. Both are required to enable us to present [ourselves] as the most competitive sourcing option for our customers. While revenues have increased sharply for the company we have not lost sight that we must constantly improve our cost structure if we expect to compete long term. This action is directly aligned with this obligation.”
