Novelis has announced plans to close its light-gauge converter foil plant in Louisville at the end of June. Approximately 110 employees will be affected by the closure.
The company announced last year that it planned to exit the light gauge converter foil market in North America. At that time, the Louisville facility was put up for sale, but despite concerted efforts to sell the operation over the past six months, no buyer was identified for the plant.
“Global over-capacity has created very challenging business conditions in the North American market for light gauge converter foil,” said Kevin Greenawalt, president of Novelis North America. “We’ve taken aggressive steps to reduce costs but with ongoing oversupply issues, we have reached the conclusion that we must reduce Novelis’ participation in the North American converter foil market.”
The converter foil product line is used primarily in the manufacture of a variety of flexible packaging products.
In order to fulfill existing customers’ orders, Novelis will maintain operations until June 30.
Novelis was formed in 2005 as a spin-off from aluminum producer Alcan Inc. Last year the company was acquired by Hindalco Industries Limited, the flagship company of the Aditya Birla Group of companies, a multinational conglomerate headquartered in India.