Bway Holding Company to Close Georgia Plastics Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Bway Holding Company (NYSE:BWY) (Atlanta, Georgia) is closing a 121,000-square-foot plastic injection molding plant in Toccoa, Georgia. The plant manufactures injection-molded plastic pails and covers, serving customers in the food, paint and jantorial sectors. The facility opened its doors in 1967 and has been a staple in the community for more than 20 years. The plant was one of three plants operated by Bway in Georgia. Due to overly large capacity of the three existing plants, sluggish sales and a recession that has brutally taken a toll on virtually every industrial sector, the company is closing the doors of the Toccoa operation.

The closure process and downsizing will take place in stages, finishing July 2, 2010. Ninety employees will be offered severance packages and/or new placements at other Bway facilities. Plant Manager Mike Beacher and VP Engineer Charlie Watling will oversee and manage the transferring of equipment and operations from Toccoa to the Atlanta, Georgia, plant. Bway is currently accepting bids from general contractors to facilitate this major move and coordinate the mechanical planning for the project.

Bway, was a large contributor and well-respected business operator in the city of Toccoa. This will be a tough blow for the community, which has relied on Bway as a steady employer. Yet, hope remains for the local economy, with investment in startups and existing plants. Industry investments in the city since July 2009 total more than $6 million. Two new industries began operating in Toccoa in late 2009: Wilbros Organic Recycling, a waste recycling company, and Currahee Group, a defense products manufacturer.

Bway had accumulated long-term debt of about $398 million by the end of last year, according to a regulatory filing. Net sales declined to $904 million from $1.02 billion. Recently, investment company Madison Dearborn Partners LLC (Chicago, Illinois) has agreed to purchase Bway Corporation for $915 million cash. This purchase will also include the assumption of debt, as stated in a joint press release from March 29, 2010. Madison Dearborn expects to complete the purchase by the end of 2010.

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