Agri-Industrial plans to expand in non-automotive fuel tanks

By Michael Lauzon
Correspondent

Published: August 30, 2012 6:00 am ET

Related to this story

Topics Blow Molding

FAIRFIELD, IOWA (Aug. 30, 1:15 p.m. ET) — Custom blow molder Agri-Industrial Plastics Co. is making room for continued expansion in the barrier fuel tank market.

Agri-Industrial bought an 80,000 square-foot building next door to its Fairfield blow molding operation. Agri-Industrial expects to complete the deal, for which terms were not disclosed, on Sept. 1.

Agri-Industrial is promoting use of six-layer, barrier plastic fuel tanks in non-automotive markets, said Mick Stielor, sales manager, in an interview.

“We have a number of new customers and new fuel tank configurations,” Stielow said. ”With additional [blow-molding] machines getting more customers will cause no concern about capacity constraints.”

“We planned to expand anyway and when this building became available it was a perfect fit,” Stielow explained by telephone from Fairfield.

Agri-Industrial will use about 68,000 square feet of the purchased building for warehousing. Moving warehouse space from its current plant will free up space in the 184,000-square-foot building and allow it to install two new Kautex multi-layer blow molding machines it ordered in November. The first machine has been tested in Germany and is on its way to Fairfield. The second will follow 4 to 6 weeks afterward.

Stielow said the purchased building eventually will house more production capacity as the company grows in fuel tank markets. Agri-Industrial will lease back 18,000 square feet of the purchased facility to its former owner, Hawthorne Direct, a full-service advertising agency in business for 26 years. Some of Hawthorne’s functions will be moved to its Los Angeles location.

Stielow said the owners of the privately held Agri-Industrial recognized several years ago the implications of tightening fuel emission regulations by the U.S. Environmental Protection Agency for non-automotive machinery. Agri-Industrial began investing in Kautex multi-layer blow molders to capitalize on expanding demand for barrier fuel tanks in lawn and garden, power sports, all-terrain vehicles, watercraft and myriad other products that run internal combustion engines from an attached fuel storage tank.

Agri-Industrial will have five multilayer Kautex machines when the new ones are delivered and 19 other Kautex industrial blow molders in Fairfield.

Stielow said both of the new multilayer machines will be in place well before the seasonal demand peak occurs for fuel tanks from February to June.

“The location is ideal as it allows us to keep all of our operations, warehousing and offices in one campus,” stated Agri-Industrial director of business development Lori Schaefer-Weaton in a news release.

Agri-Industrial now has more than 130 full-time employees. It boasts of 350 active molds.


Comments

Agri-Industrial plans to expand in non-automotive fuel tanks

By Michael Lauzon
Correspondent

Published: August 30, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Bubbles add some flair to 'Plain Jane' PET bottles

December 17, 2014 1:05 pm ET

Ron Puvak and the folks over at Plastic Technologies Inc. see big things coming from some very tiny bubbles.    More

Image

Blow molder begins expansion

December 16, 2014 11:56 am ET

SPI Blow Molding LLC is growing in two phases that will give the Columa, Mich.-based company more room for storage, warehousing and secondary...    More

Image

Blow molder Pretium Packaging buying Tri-Delta Plastics

December 10, 2014 6:28 pm ET

Blow molder Pretium Packaging LLC has purchased Tri-Delta Plastics, in a deal that extends Pretium into new markets and product categories.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events