KLW Plastics adding Atlanta plant, boosting use of post-consumer HDPE

Published: September 13, 2012 6:00 am ET

KLW says its containers with 60 percent recycled content take less energy to make and weigh less than similar containers. (KLW Plastics Inc. photo)

Related to this story

Topics Sustainability, Packaging, Blow Molding, Recycling

MONROE, OHIO (Sept. 13, 2:15 p.m. ET) — KLW Plastics Inc. is opening a plant in Atlanta to expand the company’s geographic footprint and boost production of tight-head containers made from post-consumer resin.

The Monroe, Ohio-based blow molder has developed a multilayer tight-head container made with 60 percent post-consumer resin. It’s the first container on the market to contain post-consumer resin and earn Department of Transportation approval for shipping hazardous or regulated materials, said KLW President Mike Legeza by phone.

The containers also are 10-15 percent lighter and take about 18 percent less energy to produce. Despite the material reduction, the containers feature consistent thickness and meet full United Nations standards, according to KLW.

The containers will help KLW customers reduce their carbon footprint and meet sustainability requirements, Legeza said.

“We see sustainability as essential; it’s not going anywhere,” he added.

The containers are made with a specialized high density polyethylene from Nova Chemicals Corp. and specific regrind acquired from KLW customers in a closed-loop system, a combination that can be more costly but prevents the containers from leaking, Legeza said.

KLW manufactures containers using Kautex shuttle blow molding machines. Its production lines are highly efficient — they can produce about two containers every 35-48 seconds — offer rapid color changes and feature numerous in-line quality checks, Legeza said.

The company invests about $2.5 million to $3 million on each line, he added. “We don’t cut corners here. We truly invest a lot of money in the technology side.”

The 50,000-square-foot Atlanta plant will open Sept. 19. Production will begin with a single line, largely producing containers from virgin resin, but KLW has plans to add a second line soon. That line will focus on PCR containers, Legeza said.

The Atlanta plant will have 25-30 employees.

KLW also operates plants in Houston and Monroe. The company serves the industrial market and largely manufactures 3.5 to 7 gallon tight-head containers, but does work with customers on proprietary projects, said Tom Gruber, KLW’s national sales manager.

In the next year or two, KLW plans to open an additional plant in the Northeastern US, likely in Allentown, Pa., Legeza said. Having smaller, strategically-placed plants allows KLW to offer customers rapid shipping and better customer service, he added.

“Our idea is to be advanced as we can and set good ways to doing business in an industry that is very stagnant,” he said. “We’re trying to make waves.”

The company, founded in 2005, had $25 million in sales in 2012, according to the most recent Plastics News survey of North American blowmolders.

KLW is owned by private investment firm KODA Enterprises Group.


Comments

KLW Plastics adding Atlanta plant, boosting use of post-consumer HDPE

Published: September 13, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Pactiv selling building products unit to Ireland's Kingspan

August 19, 2014 3:54 pm ET

Irish building material manufacturer Kingspan Group plc is acquiring the insulation business of Lake Forest, Ill.-based Pactiv Building Products for...    More

Image

Flexible film waste-to-oil pilot project continuing in California

August 19, 2014 3:19 pm ET

A recent decision to discontinue operations at a plastics waste-to-oil site in Portland, Ore., is not impacting a pilot program aimed at hard-to-...    More

Image

Cardia Bioplastics opening bag manufacturing plant in Brazil

August 19, 2014 9:31 am ET

Australia's Cardia Bioplastics Ltd. says the high demand for environmentally friendly bags has prompted it to set up a film and bag plant in São...    More

Image

Mauser opening joint venture in Mexico

August 18, 2014 1:27 pm ET

Mauser USA is teaming with Servicios Ambeintales Internacionales to open a new intermediate bulk container joint venture in Mexico that will include...    More

Image

BMW closes the carbon fiber loop

August 18, 2014 10:43 am ET

BMW's extensive use of carbon fiber-reinforced plastic in its i-series vehicles has prompted the development of ways to recycle unused material.    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