Packaging Firm Announces Holliston Plant Closure, Layoffs
Consolidation of an former Avery Dennison segment acquired by Toronto-based specialty packaging company CCL Industries, Inc. will result in the closure of supply chain operations in Holliston and the majority of its employees will be laid off as of Feb. 1, according to Sean Washchuk, chief financial officer for CCL.
The segment, a consumer office products business CCL renamed "Avery," is part of a consolidation of operations in the United States, Canada and Mexico, according to a statement released by the company Oct. 30. The company’s other Massachusetts supply chain operations in Chicopee are also slated to close.
The consolidation will impact 250 Mass. employees, with only a small group of employees relocating and keeping their jobs, according to Washchuk. He declined to disclose the number of employees located in Holliston. No one answered the phone Monday afternoon at the Holliston location at 89 Cross St.
Framingham Office Won't Be Impacted
CCL has a corporate office in Framingham, which will not be affected by the Holliston closure. The company’s Avery business is unrelated to the Avery Dennison division that recently moved its offices from Framingham to Westborough.
CCL acquired the Avery segment this summer, and CEO Geoffrey T. Martin said in the Oct. 30 statement that the business had been operating at excess capacity, prompting the company to restructure.
“It is with great regret that we have to announce this news but it is very clear that our Avery business had been operating with significant excess capacity and infrastructure for some time prior to the change in ownership. Operations will eventually be consolidated into existing Avery supply chain facilities located in the United States, Canada and Mexico,” Martin said.
Meanwhile, the company attributed record sales to recent acquisitions in an earnings statement released Monday morning. Sales increased 91.6 percent to $606.6 million in the third quarter of 2013, due mostly to two acquisitions the Toronto-based company completed this year.
That’s compared to $316.6 million for the third quarter of 2012, and represents 3.3 percent organic growth, 4.5 percent positive foreign currency translation, plus the purchase of the Avery segment and German automotive business INT Autotechnik.
CCL’s sales growth resulted in net earnings of $23.6 million in the third quarter ending Sept. 30, a 10-percent year-over-year increase from 2012. For the year, net earnings increased 5.7 percent to $84.1 million. Company shareholders saw quarterly earnings per share increase to 68 cents, compared to 64 cents a year ago.
Martin said the company is “very pleased” with the performance of its newly acquired businesses, which led to the twelfth consecutive period of profit growth – a record for the company.
CCL employs 9,600 people at 87 facilities around the globe.
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