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Portola Packaging to close cosmetics packaging unit

Closure manufacturer in the US, Portola Packaging has announced plans to close its Portola Tech International cosmetics closure and container manufacturing unit in a bid to concentrate on its growing beverage closure and bottle business.

According to the company, production at Portola Tech’s Cumberland, Rhode Island and Nanhai, China manufacturing locations is expected to end by the end of August 2012 and business assets, which include manufacturing equipment and molds are expected to be liquidated by the end of 2012.

Portola president and chief executive officer Kevin Kwilinski said the company has decided to cease its luxury skin care closure and container manufacturing operations.

"We believe that even more opportunities lie ahead for the non-carbonated beverage sector. That’s why we’ve decided to focus 100 percent of our efforts in supplying brand owners with beverage closures that meet or exceed performance and marketing objectives," Kwilinski said.

The shut down will allow the company to focus all of the company’s resources on its core business, which is producing closures and bottles for non-carbonated beverage applications.

Portola has grown its annual beverage closure volume by double-digit percentages, over the past three years. The growth in the juice, dairy and specialty beverage market segments has been aided by manufacturing and quality initiatives, coupled with new stock and custom closures for tamper evident, aseptic and extended shelf-life applications.

The company plans to operate ten manufacturing facilities around the world. The facilities include three in the US, three in Canada and one each in Mexico, the UK, New Zealand and the Czech Republic.