Constar shutting down facility; 40 employees left jobless

JACKSON — Constar International, LLC, a global producer of plastic containers for food and beverages that has previously announced its intention to focus on plastic packaging for technologically advanced and specialty applications, is reducing its presence in the commodity carbonated soft drink (CSD) market.

“With a large contract to supply commodity CSD products expiring at the end of 2012, we had to choose between devoting more resources to low value adding activity, or reducing that activity significantly and sharpening focus where we add greater value,” said Constar CEO Andre Laus.

Effective Jan. 1, Constar’s largest supply contract for CSD plastic packaging will expire without renewal and Constar will consequently reduce operations in the two plant facilities that were dedicated to supply under that contract. The plants are located in Jackson and Havre de Grace, Md.

The Jackson plant, which is an injection molding facility, will close at the end of January 2013. Approximately 40 employees will be affected.

The company reports it is meeting with the affected employees and communicating a program of transitional support that includes severance benefits and outplacement assistance.

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