Switzerland-based packaging firm Ball is set to cease production at its food and aerosol packaging manufacturing facility in Elgin, Illinois, US in December 2013.

The Elgin plant produces aerosol and specialty steel cans, flat steel sheet used by other Ball food and household products packaging facilities. The company will supply the plant's customers from other existing facilities.

Ball global metal food and household products packaging business chief operating officer Michael Feldser said: "Closing Elgin reduces capacity and, coupled with other changes within our manufacturing system, will enable us to maximize value in our existing business by supplying customers from a consolidated asset base and redistributing some manufacturing operations within our system."

The company stated that the 245 employees at the facility will be provided benefits, including outplacement and severance pay with respect to the company's policies and the effects bargaining process.

For the closure, Ball is expected to report an after-tax charge of about $21m, the majority of which will be recorded in 2013.

Ball is supplier of high quality packaging for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the US government. It has approximately 15,000 people across its subsidiaries worldwide.