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CCL to close Canadian aerosol manufacturing operations in 2014

Canada-based specialty packaging firm CCL Industries is set to permanently shut down its aerosol manufacturing operations in Penetanguishene, Ontario beginning first half of 2014 to mid-2015.

Hand Press Spray Bottle

CCL Industries president and CEO Geoffrey Martin said the company’s operation in Ontario now exports its entire output into the US.

"The plant has been unprofitable since 2009 and posted sizable losses during the economic crisis years. Although results improved in 2012 and 2013, the operation continues to make losses; consequently we feel it is now time to make this difficult decision," Martin added.

Following the move, the company will combine its sales volume of its Canadian plant into the current facilities located in the US and Mexico with an investment of about $25m.

The amount will be spent on increasing capacity and infrastructure at the company’s Hermitage, Pennsylvania and Guanajuato sites during 2014 and 2015 including a new aerosol production line expected to be installed in mid-2014.

CCL Container plans to add $10m to its current annualized EBITDA run rate of about $30m after integrating the operations, which is expected to be completed in mid-2015.

Image: Hand Press Spray Bottle. Photo: Courtesy of khunaspix/