Ardagh Group has announced that it is to permanently close its Milford, MA, glass container production facility due to a continued decline in demand from the mass beer market in the United States.
The closure of the site, which employs 250 people, is expected to take place on or after 31 March 2018. Affected customers will be serviced from the group’s other North American glass facilities.
Ardagh said that although capacity dedicated to the mass beer market will be reduced, it will continues to pursue growth opportunities in stronger performing end markets, including wine, spirits and food. This will involve the conversion of some mass beer capacity to serve these alternative end markets.
It added that targeted investments in its North America network, including new inspection equipment, will enhance its competitive position and enable differentiation through a focus on innovation, quality and service.
The Milford plant began operations in 1973 and has been producing beer bottles since 1987, and was part of Ardagh’s USD 1.7 billion purchase of Verallia North America in April 2014 from French group Saint-Gobain.