US-based Portola Packaging is investing $12m in its two manufacturing facilities located in Kingsport, Tennessee, and Tolleson, Arizona.
The company will use the investment to install new high-speed compression and injection molding equipment, besides upgrading the current production lines.
The expansion is expected to complete by the third quarter of 2013 and is likely to create additional 30 jobs.
Portal Packaging is expanding the facilities to meet its growing market share in the dairy business segment and demand for hot-fill and aseptic beverage closures.
Portola Packaging president and chief executive officer Kevin Kwilinski said that the Kingsport facility is closer to major northeast, southeast and southern shipping lanes as well as the midwest.
"Our Tolleson location is located in the Phoenix metro area and will primarily serve the Southwest, Northwest and Central U.S. states," Kwilinski added
The expansion at Kingsport and Tolleson facilities will lead to production halt at its Batavia plant.
The Batavia facility will slow down production by April and will eventually shut down by August, which will affect 76 jobs. Portala said it would help the employees with outplacement services.
Following the closure of the Batavia plant, Portola will have nine manufacturing facilities across the world - two in the US, three in Canada and one each in Mexico, the UK, Czech Republic and Russia.
