Ardagh announced the closure of a glass production facility in Houston oriented to the beer market and the indefinite curtailment of one in Seattle that services wine bottles customers. A total of 464 total employees are set to be impacted by layoffs.
An Ardagh Glass Packaging-North America spokesperson said the company sent a Texas WARN notice Monday regarding the Houston closure, which will affect 220 workers.
“After reviewing current beer market conditions, we have announced the closure of our Houston, Texas, glass production facility, effective July 2024. The affected customer base will be supplied from Ardagh’s remaining glass manufacturing facilities across the U.S.,” the company said in a statement emailed from Gina Behrman, vice president of marketing, communications and new product development at Ardagh Glass Packaging-North America. Ardagh acquired the Houston glass production site from Anheuser-Busch in 2021.
Separately, the company is at least temporarily laying off another 244 employees as it halts production at a Seattle facility, according to a Washington WARN notice. The company says it is indefinitely curtailing production there, meaning layoffs could exceed six months, though some of those employees “will remain actively employed for some period of time.” If market conditions change, Ardagh says it will consider restarting production at this site.
The dismissals at the wine bottle manufacturing plant are expected to begin July 1, according to the notice filed on June 17. “At this time, Ardagh’s remaining U.S. production network will allow us to continue to provide our existing and prospective wine customers with high quality American-made glass packaging,” the company said in a statement.
“As a result of ongoing pressure from low-priced imports from China, Chile and Mexico, and market conditions, Ardagh Glass Packaging-North America continues to face demand challenges for its U.S.-produced glass,” the company said in its statement. Ardagh petitioned U.S. trade regulators late last year to investigate wine bottle imports from China and other countries. Earlier this month, the U.S. Department of Commerce issued a preliminary determination that found these products are being unfairly subsidized; a final determination on countervailing duties is expected in August.
On the beer side, Ardagh executives reported in several earnings calls that its own sales had dipped due to a beer controversy, but didn’t specifically name the brand. Last year Ardagh felt trickle-down effects when AB InBev suffered a consumer boycott of Bud Light.
The Houston and Seattle announcements follow Ardagh last year permanently closing glass plants in North Carolina and Louisiana, which affected more than 580 workers.
Outside of Houston and Seattle, Ardagh has 10 other glass production facilities in the U.S., with more concentrated in the Eastern United States, according to a company map.
Going forward, the company “remains focused on targeted investments to enhance our overall performance as a leading supplier of high quality, American-made sustainable glass packaging for the food and beverage industries.”
Ardagh Glass Packaging’s revenue in North America for the first quarter of 2024 declined about 11% year over year from $434 million to $386 million. Ardagh Group will release second quarter earnings on July 25.
