Cook Medical opens $19 million tubing plant in Illinois

Mike Verespej

Published: August 31, 2012 6:00 am ET

Related to this story

Topics Medical, Pipe/Profile/Tubing

CANTON, ILL. (Aug. 31, 2:25 p.m. ET) — Privately owned medical-device manufacturer Cook Medical Inc. has opened a $19 million tubing plant in Canton.

The plant may be the firm’s last new U.S. manufacturing facility —  at least in the near term — since the Bloomington, Ind., company said it will focus on future growth overseas because of the pending 2.3 percent medical-device excise tax.

At the plant’s grand opening Aug. 31, Cook Medical President Kem Hawkins said the 60,000-square-foot plant will employ 60 and manufacture polytetrafluoroethylene tubing, according to a news release. The 49-year-old company uses the tubing in the 16,000 different medical devices that it manufactures.

A sister plant in Canton, which opened two years ago at a cost of $20 million, employs more than 100 skilled workers making angiographic catheters. The two plants, which were built with future expansion in mind, are expected to employ more than 350, eventually.

Canton was the boyhood home of late Cook Group Inc. founder Bill Cook, who wanted to help revive his hometown, which took a severe economic hit nearly 30 years ago when International Harvester closed a plant that employed 3,000.

“We are thrilled to open Cook Polymer Technology Canton, which will provide another 60 jobs to the people of Canton and add a significant economic boost to this small community” of roughly 15,000 people, Hawkins said.

“At Cook, we have always believed in reinvesting revenues earned here and abroad in new manufacturing facilities that create jobs for people,” said Hawkins, who is also president of Cook Group. “Over nearly 50 years, Cook has reinvested more than $1.5 billion in plants across the U.S. and in key facilities overseas that now employ 10,000 people. And we hope circumstances will allow us to continue that tradition.”

However, the company said in late July that it will concentrate future manufacturing plant investments overseas. It already has scrapped plans to open five more medical manufacturing plants in the Midwest over the next five years — similar in size to the plants in Canton — because of the medical-device excise tax, which goes into effect in January.

Cook Medical estimates that tax, part of the 2010 health-care reform plan known as Obamacare, will cost the company between $20 million and $30 million a year. Its late founder Bill Cook estimated the tax would cost the company 1,000 jobs. Cook died April 15, 2011.

Currently, Cook Group has production facilities in Ireland, Denmark and Australia, in addition to its U.S. plants.

At the news conference, Canton Mayor Kevin Meade said he is amazed at the positive economic impact the two Cook plants are having on the community.

“It doesn’t take a huge plant with thousands of jobs to make a real impact. Even a few-hundred good jobs are enough to help a town the size of Canton turn itself around,” he said.

Since Cook opened its first facility in Canton, Meade noted that the local hospital has invested more than $40 million in a new clinic and in upgrades to its existing facilities.

Cook Group also has invested more than $15 million in Canton’s downtown square, building a new 32-room hotel and buying and improving a shopping mall and other properties.

In addition, a number of new retail stores have opened and local businesses have been able to expand, Meade said. And, after years of no new housing permits, he said the city also has experienced a veritable housing boom as a new 42-unit apartment complex is under construction, and permits have been issued for construction of 16 homes.

“The good-paying jobs created with this new investment,” added U.S. Sen. Dick Durbin, D-Ill,, “will have a ripple effect in terms of economic activity far outside the doors of its facilities, as new workers make home improvements they’ve postponed, buy meals and clothing, and contribute to the area’s economy.”

Cook is one of the largest privately held manufacturers of medical devices, with annual sales of more than $1.8 billion. It employs about 4,000 in the Bloomington area.


Comments

Cook Medical opens $19 million tubing plant in Illinois

Mike Verespej

Published: August 31, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Ply Gem continues acquisition streak, buying Simonton for $130 million

August 20, 2014 2:33 pm ET

Building materials manufacturer Ply Gem Holdings Inc. will acquire Simonton Windows from Fortune Brands Home & Security in a $130 million deal that...    More

Image

Mexichem buys HDPE pipe extruder Dura-Line Corp.

August 18, 2014 2:05 pm ET

UPDATED — PVC pipe and specialty chemicals maker Mexichem SAB de CV said Monday it has agreed to buy Dura-Line Corp., a prominent manufacturer...    More

Image

Sintex Wausaukee Composites opens manufacturing plant in India

August 12, 2014 4:57 pm ET

Sintex Wausaukee Composites is bringing its light resin transfer molding expertise to India, opening a fiber reinforced plastic production cell for...    More

Image

Sigma Plastics expanding NC plant

August 11, 2014 4:37 pm ET

Sigma Plastics Group, in news unveiled Aug. 11, indicated the company will create 80 jobs at the former Excelsior Packaging Group's Rosman, N.C.,...    More

Image

Uponor investing in new technology companies for future growth

August 11, 2014 4:24 pm ET

Cross-linked polyethylene pipe maker Uponor Inc. is casting a net to catch future, promising water management technologies.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

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

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

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

More Events