Portola Packaging, Inc. is shutting down its Portola Tech International cosmetics closure and container manufacturing unit in order to focus on its growing beverage closure and bottle business.
Production at Portola Tech's Cumberland, R. I. and Nanhai, China manufacturing locations is expected to cease by the end of August. Business assets (manufacturing equipment, molds, etc.) are expected to be liquidated by the end of the year.
"We've decided to cease our luxury skin care closure and container manufacturing operations. This will enable Portola to focus all of the company's resources on its core business which is producing value-added closures and bottles for non-carbonated beverage applications, said Kevin Kwilinski, president and chief executive officer, Portola.
Over the past three years, Portola has grown its beverage closure volume by double-digit percentages annually. Manufacturing and quality initiatives, coupled with new stock and custom closures for tamper evident, aseptic and extended shelf-life applications are responsible for part of the growth-particularly in the juice, dairy and specialty beverage market segments.
"We believe that even more opportunities lie ahead for the non-carbonated beverage sector. That's why we've decided to focus 100 percent of our efforts in supplying brand owners with beverage closures that meet or exceed performance and marketing objectives," Kwilinski said.
Going forward, Portola Packaging will operate 10 manufacturing facilities around the world: three in the United States, three in Canada and one each in Mexico, the United Kingdom, New Zealand and the Czech Republic.
