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

China's plastics industry making a shift

January 27, 2015 3:41 pm ET

China's plastic industry is in the midst of a “profound adjustment” from large-scale and high-speed growth to growth focused on quality,...    More

Image

Bain buying TI Automotive

January 27, 2015 8:49 am ET

After months of speculation, Auburn Hills, Mich.-based TI Automotive Ltd. entered into an agreement Tuesday to be acquired by private equity firm...    More

Image

UK legislators reject fracking moratorium

January 26, 2015 12:19 pm ET

UPDATED: Environmental campaigners turned their anger on the United Kingdom's Labour party Monday after a vote to impose a moratorium on fracking...    More

Image

Major packaging merger includes plastics operations

January 26, 2015 12:24 pm ET

A merger of packaging companies MeadWestvaco Corp. and Rock-Tenn Inc. will create a new company with nearly $16 billion in annual sales.    More

Image

MonoSol optimistic it can reach new markets with water soluble films

January 26, 2015 4:46 pm ET

MonoSol LLC — riding a wave of growth spurred on by the rapid adoption of water soluble detergent packets in recent years — is looking to ...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

More Events