Nov 14, 2005. /Lesprom Network/. Packaging Dynamics Corporation announced on Monday that it will close its manufacturing plant in Farmers Branch, Texas. The plant is part of the company's food packaging segment and employs approximately 55 people. Operations at the plant will continue into the first quarter of 2006 when production will be transferred to other facilities. All customer orders will be honored and no supply interruptions are anticipated during the transition. The company expects to incur up to $1.5 million of costs ($0.9 million after-tax) related to this initiative during the fourth quarter of 2005 and the first quarter of 2006, most of which are expected to result in future cash expenditures. These costs are expected to include approximately $0.9 million of charges related to severance and lease liability costs and approximately $0.6 million of other costs related to relocating assets and production to other facilities. Frank V. Tannura, chairman and chief executive officer, said, "The decision to close this facility was very difficult and should not be viewed as a reflection of the efforts or performance of our employees. Rather, it reflects the need to rationalize overlapping manufacturing activities in the food packaging segment following the acquisition of Papercon. We believe this action will better position the business for accelerated revenue and earnings growth as we enter 2006. We consider the plant closure and relocation costs to be unusual or non-recurring and thus are excluded from the updated earnings guidance we provided in conjunction with the release of our third quarter earnings." Packaging Dynamics, headquartered in Chicago, Illinois, is a flexible packaging company that laminates and converts paper, film and foil into various value-added flexible packaging products for the food service, food processing, bakery, supermarket, deli and concession markets as well as a limited number of industrial markets.