Owens-Illinois said Tuesday it will close its Godfrey, Ill., machine parts manufacturing operation as part of a broad initiative to reduce working capital and improve system costs.
The company said production at the plant is expcted to phase out over the next four months, and Owens-Illinois will outsource its machine parts manufacturing to various third-party suppliers.
"We sincerely regret having to make this decision, but it is consistent with our core priorities, enabling the company to be more competitive by reducing its glass container manufacturing costs through lower investment in machines and machine repair parts while improving capital capabilities and realizing cost reductions that will better position the company in the future," said Ed White, Owens-Illinois' senior vice president and chief financial officer. "O-I will continue to evaluate opportunities to reduce the cost of parts for our proprietary glass forming machines as part of our machine manufacturing strategy."
The Godfrey facility opened in 1958 to manufacture and distribute parts used in glass container forming machines. Currently, the 300,000 square foot facility employs 261 people.