New Manufacturer Crown Cork and Seal USA Plans $20M Investment and Job Creation in Florence County
Florence County will soon welcome a new manufacturer, Crown Cork and Seal USA Inc., as it plans to invest over $20 million and create 29 full-time jobs. Crown Cork and Seal USA Inc., a subsidiary of Tampa-based Crown Holdings, specializes in producing metal cans for beverages, food, and aerosol packaging, as well as transportation packaging. The company operates globally, with 200 other locations spread across 40 countries.
Having recently expanded its operations in Germany through the acquisition of a beverage can and end manufacturing plant, Crown Cork and Seal USA Inc. is now set to establish a presence in Florence County. The company’s plans were confirmed through documents from the Florence County Council, which revealed that Crown Cork and Seal USA Inc. was formerly referred to as Project Mimosa. The company’s identity was disclosed during the council’s meeting on August 17.
While Crown Cork and Seal USA Inc. did not respond immediately to a request for comment, Gregg Robinson, CEO of the Florence County Economic Development Partnership, remained tight-lipped about the company’s arrival and the ongoing lawsuits against it. Crown Cork and Seal Company, Inc. is currently facing numerous lawsuits related to asbestos exposure and resulting bodily injuries. These claims are linked to a U.S. company that Crown purchased a majority share of stocks in and merged with in 1963.
However, it is worth mentioning that several states, including South Carolina, have laws that limit the asbestos-related liabilities of companies involved in mergers. South Carolina enacted the Successor Asbestos-Related Liability Fairness Act in 2006, which restricts liabilities to the fair market value of the merging company’s total gross assets before the merger. Companies are not responsible for liabilities that exceed this limit. Crown Cork and Seal USA Inc. acknowledged in its filing that it had paid more for asbestos-related claims than the total adjusted value of its predecessor’s assets.
As of June 30, Crown Cork and Seal USA Inc. had paid $7 million to settle asbestos claims, along with related legal and defense costs, and resolved 57,900 claims. The company continues to face 17,000 claims made after 1964, while pre-1964 claims amount to 40,500. These figures exclude approximately 19,000 inactive claims. According to Crown Cork and Seal USA Inc., it is unlikely that the plaintiffs in these inactive claims will pursue further action against the company.
Financially, as of June 30, the company had accrued $213 million for pending and future asbestos-related claims and related legal costs. Additionally, unasserted claims amounted to $165 million. The company stated that there is a possibility of the actual loss exceeding the amount it had accrued. Notably, 24% of the total claims in 2022 involved allegations of serious diseases such as mesothelioma.
The Florence County Council is set to give third reading to an infrastructure credit agreement that will provide Crown Cork and Seal USA Inc. with infrastructure credits during its meeting on August 17.
In conclusion, the arrival of Crown Cork and Seal USA Inc. in Florence County brings the promise of new job opportunities and significant investments. Despite the ongoing asbestos-related lawsuits against the company, its establishment in the county is in line with laws that limit asbestos liabilities for merged companies. With Crown Cork and Seal USA Inc.’s global operations and strong financial standing, its presence is expected to contribute positively to the local economy.
