Constar closing 2 plants, cutting workforce

By Dan Hockensmith | PLASTICS NEWS STAFF

Posted October 8, 2010

PHILADELPHIA (Oct. 8, 12:20 p.m. ET) — Constar International Inc. will close its Orlando, Fla., and Kansas City, Kan., blow molding plants.

The company also will cut its corporate salaried ranks. In all, the cutbacks affect 250 employees, Philadelphia-based Constar said in an Oct. 8 news release.

“In light of volume declines and in an effort to better serve our customers, we concluded that consolidating plant operations would have a meaningful impact,” Constar President and CEO Grant Beard said in the release.

In connection with the restructuring, Constar said it expects to incur total pretax restructuring charges of approximately $7 million to $10 million over the next several quarters.

The majority of the restructuring actions are expected to be completed by the end of 2011. The company anticipates annual cost savings of $22 million as a result.

The Orlando facility is expected to close at the end of this year, while the Kansas City plant is expected to close in the first quarter of 2011.

Constar said plant customers will be served by other Constar plants.

The company recently underwent a change in top management.

On Sept. 14, Grant Beard — a partner at Anderson Group, a Bloomfield Hills, Mich.-based private equity firm — was announced as Constar’s new president and CEO. He succeeds Ruth Mack, who served as interim president and CEO. Beard had been.

Beard formerly was president, CEO and director of publicly traded TriMas Corp. Before that, he was chairman, president and CEO of Health Media Inc., now part of Johnson & Johnson.

Plastics News estimates Constar’s 2009 North American blow molding sales at around $508 million. The firm employs about 1,200 at a dozen plants in the U.S. and Europe.

SOURCE: PLASTICS NEWS

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