MONTREAL – Intertape Polymer Group Inc. (TSX:ITP) will shift work currently done at its plant in Truro, N.S., to a factory in Utah as part of a North American reorganization due to competitive pressures and volatile costs.
The Nova Scotia plant will continue to make some products for the Montreal-based company, which manufactures plastic wrapping and tapes for packaging.
Intertape didn’t say how many people would be affected by the changes.
“Considering competitive pressures, market conditions and the volatility of input costs, we are continuously reviewing and analyzing all aspects of our operations,” president and CEO Greg Yull said Monday.
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“The process will be seamless to customers and we do not anticipate any significant impact on our revenues,” Yull said in a news release.
The shrink film business in Truro will be transferred to Tremonton, Utah, which will create one facility in North America for this business, Intertape said.
Woven fabric products will continue to be produced at the Nova Scotia plant. These changes are expected to be completed in late 2012 and early 2013.
Intertape expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of more than US$5 million in 2013 and about US$6 million in each subsequent year.
A plant in Richmond, Ky., will be closed and its production will be shifted to Carbondale in Illinois.
Intertape has a total of 19 locations employing 1,800 people, mostly in North America. It also has one manufacturing plant in Europe and 12 in North America.
The company said it will take a charge of between $14 million and $16 million in the second quarter to reflect some of the costs of the plan, including severance pay and other costs.
Intertape Polymer Group Inc. makes a variety of paper and film based pressure-sensitive and water-activated tapes, specialized polyolefin films, woven fabrics and complementary packaging systems for industrial use and retail applications.
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