SC company to close NC plastic bag plant

MOUNT OLIVE, N.C. (AP) -- The nation's largest maker of plastic bags says it's closing a North Carolina plant and will lay off about 160 employees.

Hilex Poly Co. is reducing its production capacity because of declining demand for plastic bags. The Hartsville, S.C.-based company said Thursday it plans to lay off workers at its Mount Olive by Nov. 10.

The News & Observer of Raleigh reports Hilex filed for bankruptcy in May because of increasing resin prices, and emerged in July. But environmental concerns have prompted some cities and grocery and retail stores to ban plastic bags or offer consumers reusable canvas bags.

Hilex's vice president for operations Ben Mascarello says the dramatic shift toward reusable bags is expected to maintain demand for the company's reusable bag products.

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(Copyright 2008 by The Associated Press. All Rights Reserved.)


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