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

By Jessica Holbrook

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
Companies & Associations

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

By Jessica Holbrook

Published: September 13, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Amut exec calls for a new approach to improve recycling

April 1, 2015 1:14 pm ET

Things have to change in order for recycling rates to increase and contamination to decrease, said the president of Amut North America during NPE...    More

Image

Erema expanding US site to show recycling systems capacity

April 1, 2015 1:09 pm ET

Austrian plastic recycling systems maker Erema North America Inc.'s is investing millions of dollars in an expansion aimed at providing more...    More

Image

Solegear raising funds as it debuts on TSX Venture stock exchange

April 1, 2015 11:08 am ET

A fledgling bioplastics company has raised capital for growth and obtained a listing on the TSX Venture stock exchange.    More

Image

Dow Chemical sees potential for PE growth in packaging

March 30, 2015 1:17 pm ET

The packaging market continues to provide growth for the polyethylene business of Dow Chemical Co. — which is a good thing, since the firm will ...    More

Image

Nanotechnology isn't science fantasy

March 30, 2015 12:15 pm ET

ORLANDO, FLA. — Nanotechnology is fast moving from the world of science fiction to science fact, with developments and app...    More

Market Reports

Trends in Resin Distribution

The growth of the North American resin distribution market is undeniable - and industry analysts are confident that growth will continue in 2015 and beyond.

This new report analyzes market trends and provides data on historical sales trends for PE (distribution and resellers), PolyOne Distribution figures, U.S. ethylene expansions based on shale gas and natural gas production by category to 2035.

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

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

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

More Events