Rexam, a major plastics manufacturer, has announced the closure of two U.S. plants, including the one in Rossville, Ga.

There are about 85 people who work at the Rossville Rexam plant.

A spokesperson says that the closures follow Rexam's acquisition of O-I Plastics and are "in line with the strategy to optimize manufacturing capabilities and the utilization of operations in North America."

The plant closure in Rossville is scheduled for the fourth
quarter 2008. The Rossville plant, which began operations in 1982, manufactures diagnostic healthcare packaging. Production will be absorbed by a number of Rexam healthcare packaging plants throughout the US. There will be no interruption in customer shipments.

The plant closure in West Lafayette is scheduled for the third quarter of 2008. The plant, which began operation in 1978, employs about 60 people and manufactures medical diagnostic products. The plant's production will also be absorbed by other Rexam manufacturing facilities with no
interruption in customer shipments.

The company says that all employees affected by the plant closures will receive a competitive severance package and will be provided outplacement assistance.

Rexam operates 65 plants and employs approximately 16,000 people around the world, serving the healthcare, closures and personal care markets.

"This is part of our strategy to establish operational excellence and align our manufacturing capabilities across our plastics business in the US and the world," said Graham Chipchase, Group Director, Rexam Plastic Packaging. "It will allow us to improve the overall utilization of our existing operations, create synergies and continue our focus on delivering world-class quality products and services to customers."