Ball Corp. is shutting its St. Paul beverage can factory sometime in spring 2023.
The closure announcement Thursday follows a second-quarter loss tied to inflation, slowing customer demand and the ceasing of investments in its Russian operations due to the war in Ukraine.
The company expects about 110 workers in St. Paul to be affected by the closure.
Under its prior owner, the plant was hailed for producing 2.1 billion aluminum cans a year for Coke, Pepsi, Dr Pepper, breweries and other customers across the United States.
Now, the St. Paul operation is expected to be consolidated into to other Ball locations.
The 142-year-old Colorado-based Ball, which bought the former Rexam can factory near Robert Street and Plato Boulevard in 2016, also will shut its factory in Phoenix and delay construction of a new beverage can plant in North Las Vegas.
Ball has 24,300 employees across the Americas and Europe. It is not yet known how many jobs will be lost as it consolidates.
On Thursday, Ball posted a $174 million loss for the second quarter on sales of $4.13 billion. It reported $13.8 billion in sales for 2021.
During a conference call with analysts Thursday, CEO Daniel Fisher cited headwinds such as "notable cost inflation, demand volatility and euro earnings translations." After taking cost and production actions, though, "we can successfully navigate the current economic environment and create value for our stakeholders."
Ball's stock took a 5% hit on Friday to close at $56.35 after plunging 18% Thursday.
Deutsche Bank analyst Kyle White lowered his price target for the company Friday from $81 to $56, according to Reuters.
"While we believe the multiyear growth story for beverage cans still exists on a global basis, we see better ways to capture this opportunity on a relative basis and choose to be more selective," he said in a research note, warning the company has lost its forward momentum.
