Packaging

Ball to Close Two Metal Beverage Packaging Plants

Monday 03. November 2008 - Ball Corporation (NYSE:BLL) announced today that it plans to close its metal beverage packaging manufacturing plants in Kansas City, Mo., and Guayama, Puerto Rico.

As a result of the closures, an after-tax charge of approximately $32 million will be recorded in the company’s results. Approximately $28 million of the charge is expected to be recorded in the fourth quarter of 2008 with the remainder recorded in the first quarter of 2009. Cost reductions associated with the plant closings are expected to exceed $30 million in 2009 and to be $9 million cash positive on final disposition of the assets.

“The closure of these facilities will further reduce 12-ounce can capacity in our metal beverage packaging manufacturing system, more efficiently allocate production and consolidate specialty can production into facilities better located to serve our customer base,” said John A. Hayes, executive vice president and chief operating officer.

The Kansas City plant operates four production lines capable of making 1.1 billion cans in a variety of sizes and employs approximately 180 people. It is expected to close by the end of the first quarter of 2009, subject to customer requirements.

The Guayama plant operates one production line capable of making 700 million 12-ounce cans annually and employs approximately 70 people. The plant is expected to close by the end of 2008.

The Kansas City plant opened in 1981 and the Guayama plant opened in 1982. Ball acquired both facilities in 1998 as part of the acquisition of the metal beverage container assets of Reynolds Metals Company.