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Glenview, IL--October 30, 2003-- Illinois Tool Works Inc. is planning to close its Acme Packaging plant in Riverdale's plastic strapping line in January, four months after it purchased the Tinley Park-based company.

Glenview, Ill.-based ITW recently notified the United Steelworkers of America Local 1053 -- which represent the company's hourly employees -- of the closing, according to Louis F. Mark, the local's president.

"They just handed me a letter," he said.

In August, ITW purchased Acme Packaging, a leading producer of steel strapping and strapping tools and one of its main competitors in the strapping products sector. At the time, it signed an agreement with the steelworkers union that it wouldn't close the company for at least six months. However, the agreement allows ITW to close a production line for business reasons.

John Brooklier, ITW vice president of investor relations, said Wednesday that the company doesn't comment on its operations. In August -- when the deal to acquire Acme was completed -- Brooklier said the purchase of Acme Packaging was part of ITW's overall acquisition strategy, which seeks to better serve key customers with expanded product offerings.

He also said it would take a while for ITW to get a full understanding of Acme Packagings business, and the company wouldn't make any major decisions on the facilities until it did.

Privately held ITW wouldn't reveal how much it paid to acquire Acme, which it said would be operated by its Signode Packaging Systems division.

Signode is a worldwide manufacturer and distributor of packaging systems.

As recently as 2000, Acme Packaging controlled one-third of the domestic steel strapping market, with ITW's Signode controlling another third.

Through ITW's acquisition of Acme, virtually all major steelmakers have to rely on Signode's steel strapping for packaging their steel loads.

Loretta Tyler, USWA Sub-District 1 staff representative, is in charge of negotiating the fate of the 30 to 40 steelworkers working on the plastic strapping line. Tyler couldn't be reached for comment Wednesday.

Acme employs about 450 people at its production facilities in Riverdale, New Britain, Conn., Bay Point, Calif., and Leeds, Ala. In November 2002, Acme Packaging company emerged from the bankruptcy protection its parent filed in 1998.

 

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