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Constar International Inc., which makes plastic packaging for food and drink, said Friday it is cutting 250 jobs in a move to consolidate plant operations.
The company said it is closing its Orlando, Fla., and Kansas City, Kan., facilities and trimming its corporate ranks. It currently has about 1,200 employees.
"In light of volume declines and in an effort to better serve our customers, we concluded that consolidating plant operations would have a meaningful impact," President and CEO Grant Beard said in a statement.
The company expects total pretax restructuring charges of about $7 million to $10 million, with about $6 million expected to be recorded in the fourth quarter.
The Orlando facility is expected to close at year-end, while the Kansas City plant is expected to close in the first quarter.
The majority of the restructuring actions are expected to be completed by the end of 2011. The company said the move will save it up to $22 million annually.
Shares of Constar rose 39 percent, or 13 percent, to $3.21 in midday trading. The stock has traded between $1.92 and $27 over the last 52 weeks.