M.A. HANNA CO. SETS $4 BILLION SALES GOAL

By Frank Esposito
Senior Staff Reporter

Published: May 12, 1997 6:00 am ET

Related to this story

Topics Expansions, In Print

M.A. Hanna Co. officials said the Cleveland-based specialty chemicals company is setting its sights this year on acquisitions, including some in Europe, that eventually could add $75 million to $100 million in annual sales.

Douglas McGregor, who replaced Martin Walker as president and chief executive officer in January, told shareholders at their May 7 annual meeting that the company, which broke the $2 billion mark in sales last year for the first time, has set a goal of reaching $4 billion in total sales by 2001. That goal includes a target of about $1 billion in international sales, McGregor said.

The company's European holdings include color and additive plants in France, Belgium, Sweden, Germany and England and plastic compounding works in Germany and Spain. Barb Gould, director of investor relations and communications, said Hanna has has ``a pretty long list of companies with a strategic fit of product or market'' for possible acquisitions.

In Europe, that list would include facilities in Italy, a sizable market where Hanna currently has no production works.

Gould said the company still is looking at possibilities in Latin America, particularly in Brazil. Hanna already operates a color plant near Mexico City.

While the Asian market is still a healthy possibility, Gould said a lack of quality technology makes acquisitions there more difficult. Hanna's Asian holdings include a recently opened color plant near Shanghai, China, and a joint compounding venture scheduled to open this year in Suzhou, China.

Financial data presented by McGregor included Hanna posting its 20th consecutive quarter of year-over-year profit growth and its fifth consecutive year of record profit from continuing operations. Sales grew 9 percent and profit was up 19 percent last year.

The company also announced several major personnel moves.

McGregor was elected chairman, effective July 1, succeeding Walker, who will retire June 30.

The board appointed a senior leadership committee that will assume greater responsibility for global planning and management. Members include Kent Darragh, president of the firm's Cadillac Plastic business unit; Garth Henry, vice president of international operations; and Douglas Schrank, vice president of M.A. Hanna Plastics Americas.

Darragh, Henry and Schrank also were elected senior vice presidents of operations.

Darragh will take over rubber compounding operations while maintaining his position with Cadillac. Schrank's responsibilities were expanded to include M.A. Hanna de Mexico and Latin American expansion.

In other news, the company announced that its engineered materials unit has expanded to include the thermoplastic elastomers business unit.

The TPE business headquarters will move to the company's new engineered materials facility being built in Atlanta. The engineered materials unit was based in Dyersburg, Tenn.

Because of growth in the TPE market, the firm said it may expand TPE capacity to two of its manufacturing sites. Those locations were not disclosed.

Hanna only produces TPE compounds at its North Ridgeville, Ohio, plant.


Comments

M.A. HANNA CO. SETS $4 BILLION SALES GOAL

By Frank Esposito
Senior Staff Reporter

Published: May 12, 1997 6:00 am ET

Post Your Comments


Back to story

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events