November 12, 2008 / 10:07 PM / 9 years ago

UPDATE 1-Crown Holdings closing two Canadian plants

*Crown Holdings closing two plants, cutting 175 jobs

*Plants will be shut in first quarter of 2009

*Net cost of shutdowns will be $13 million

*Moves to save $11 million a year

LOS ANGELES, Nov 12 (Reuters) - Beverage can maker Crown Holdings Inc (CCK.N) on Wednesday said it would close two plants in Canada, cutting 175 jobs.

The shutdowns would save about $11 million a year, the company said in a statement.

The announcement affects Crown Holdings’ food can plant in Dorval, Canada and a beverage can and bottle cap facility in Montreal. Both are expected to close during the first quarter of next year.

Crown Holdings expects to take charges of $21 million in the fourth quarter and $4 million in 2009 related to the closures. In addition, it will record costs of between $20 million and $26 million after it receives regulatory approval to settle pension plan obligations related to the plants.

After recording $7 million of property sale proceeds, the net cost of the shutdowns is expected to be about $13 million, the Philadelphia-based company said.

Crown Holdings shares closed at $16.50 on the New York Stock Exchange, down $1.27, or 7.2 percent, on the day. (Reporting by Nichola Groom, editing by Leslie Gevirtz)

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