June 26, 2012 / 12:43 PM / in 6 years

UPDATE 1-Intertape to shut Kentucky tape-making plant

June 26 (Reuters) - Packaging products maker Intertape Polymer Group Inc said it will shutdown its tape manufacturing facility in Richmond, Kentucky, as it looks to cut costs.

The company, which will move most of its tape production from Kentucky to its Carbondale, Illinois facility, also said it will transfer its shrink film production business to its Tremonton, Utah plant from Truro, Nova Scotia.

The company will take a charge of $14 million to $16 million in the second quarter and will also incur costs of about $3.5 million in the second half of the year and in early 2013 related to the shutdown and production transfers.

The company expects the moves to add more than $5 million to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2013 and about $6 million in each subsequent year.

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