BRADENTON -- Intertape Polymer Group Inc., whose headquarters are in Bradenton, plans to close its Richmond, Ky., facility and transfer the company's shrink film production from Nova Scotia to its Tremonton, Utah, plant for cost savings, the company announced Tuesday.
The Richmond facility, which manufactures tape products, will be closed in part due to productivity improvements at other facilities. Most of its operations will be transferred to Intertape's Carbondale, Ill., plant, the company said.
The changes are expected to take place by early 2013.
"Considering competitive pressures, market conditions and the volatility of input costs, we're continuously reviewing and analyzing all aspects of our operations," Intertape President and CEO Greg Yull said in a statement. "The process will be seamless to customers and we do not anticipate any significant impact on our revenues."
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The manufacturing plan will result in a charge of $14-$16 million that's expected to be recorded in the second quarter, with total company capital expenditures in 2012 expected to reach $20-23 million.
With the plant closure and transfer of production, Yull expects a positive contribution to adjusted earnings before interest, taxes, depreciation and amortization of more than $5 million in 2013 and about $6 million in each subsequent year.
Headquartered in Bradenton and Montreal, Intertape manufactures a variety of paper and film based tapes, specialized polyolefin films, woven fabrics and packaging systems for industrial and retail use.
The company employs about 1,800 workers, with operations in 19 locations, including 12 manufacturing facilities in North America and one in Europe.