Less than two years after struggling to keep up with demand, Ball Corp., the leading U.S. can manufacturer, is closing two production facilities.
Weakening demand for beer, seltzer and other alcoholic beverages is prompting Ball to close plants in Phoenix and St. Paul, Minn. CEO Daniel William Fisher said in an earnings call that production of beer and other alcohol cans was down 3% in the second fiscal quarter, with hard seltzer down nearly 20%. He said the closures are “permanent shutterings,” with Phoenix scheduled to cease operations by the end of the year and St. Paul in spring 2023.
He said the plants were due for closing: “One was built in 1969, the other was built in the mid-70s. These are landlocked facilities. They are both really old facilities.”
The situation is different from the beginning of 2021, when Ball had a hard time meeting demand at the height of the pandemic. Ball had responded to that situation by opening a plant in Glendale, Ariz., and increasing production at other locations.
