Berry dedicates Kentucky operation to make insulated PP cups & containers

By Frank Esposito
Senior Staff Reporter

Published: February 8, 2013 1:05 pm ET
Updated: February 8, 2013 1:10 pm ET

Related to this story

Topics Packaging, Injection Molding, Thermoforming, Food service

EVANSVILLE, IND. -- Berry Plastics Group Inc. has high hopes for its new Versalite-brand packaging material. Those hopes are so high that Versalite will be the only product made at the firm's plant in Madisonville, Ky., which will reopen later this year.

In a Feb. 7 phone interview, Versalite business development manager Joseph Wood described the product as "an insulated polypropylene structure," but he declined to offer other details of the product's makeup. Target markets for Versalite include containers for both hot and cold food and drinks sold in convenience stores or quick-serve restaurants.

"Our goal is to focus on products with thermal management," Wood said. "We chose polypropylene [for Versalite] because it's a fairly common plastic with a good material profile that's used in other food and beverage applications.

"We've done a lot of research to understand thermal management with business-to-business customers and with consumers," he added. "We wanted to look at what they want in packaging."

Versalite production will begin in Madisonville later this year. Currently, the plant "is in the final stages of product development and installation," Wood said.

Officials with Evansville, Ind.-based Berry previously have said the firm is investing almost $100 million to reopen the Madisonville plant, a former plastic closures facility that closed in early 2012. The reopened plant is expected to employ more than 400 — almost three times the number it employed when it closed. Berry is receiving up to $10 million in tax incentives from the state of Kentucky for the reopening.

Versalite will be Berry's third new product launch since November, joining Polyken 500-brand duct tape and DriBulk-brand container liners.

Berry is one of North America's largest plastic processors. In recent Plastics News rankings, Berry was the region's second-largest injection molder, third-largest film and sheet maker, fifth-largest thermoformer and 11th-largest blow molder.

Berry reported sales of almost $1.1 billion in the first quarter of its 2013 fiscal year, which ended Dec. 29. That total was down almost 6 percent from the same quarter in fiscal 2012. Berry lost $10 million during the quarter after losing $31 million in the year-ago period.

Most of the first-quarter sales loss occurred in the firm's rigid packaging unit, where sales fell almost 10 percent. Quarterly sales in engineered materials fell less than 1 percent, while sales in flexible packaging were flat.

For its full 2012 fiscal year, Berry rang up sales of almost $4.8 billion, up almost 5 percent vs. fiscal 2011. The firm showed a $2 million profit for fiscal 2012 after losing almost $300 million in the previous fiscal year.

Berry launched an initial public offering of its stock on the New York Stock exchange Oct. 4. Its per-share price debuted near $15 and was at $18.15 in late trading Feb. 7 — an increase of almost 20 percent in about four months.


Comments

Berry dedicates Kentucky operation to make insulated PP cups & containers

By Frank Esposito
Senior Staff Reporter

Published: February 8, 2013 1:05 pm ET
Updated: February 8, 2013 1:10 pm ET

Post Your Comments


Back to story


More stories

Image

Blow molding machinery maker opens first plant in Taiwan

October 1, 2014 1:27 pm ET

Taiwanese equipment maker Kin Precision Industry Co. Ltd. has opened a 2,000-square-meter, 25-employee factory in Taichung, Taiwan, with an eye to...    More

Image

Houston Plastic continues to grow with new press, controlled production area

October 1, 2014 11:32 am ET

Custom injection molder Houston Plastic Products Corp. has extended its clamp tonnage range and added an environmentally controlled molding area.    More

Image

Speaker: Many issues can affect multi-cavity molds

October 1, 2014 2:02 pm ET

There are several conditions necessary across all cavities of a multi-cavity mold to ensure that all parts are produced the same. These include...    More

Image

Nucleation offers solution to shrinkage in HDPE closures

October 1, 2014 1:57 pm ET

For caps producers, nucleation can provide a practical solution to eliminate shrinkage variations in high density polyethylene beverage closures....    More

Image

Brown signs California's plastic bag ban into law

September 30, 2014 1:38 pm ET

Gov. Jerry Brown (D) made it official today: plastic bags are banned across the entire state of California.    More

Market Reports

Plastics in Mexico - State of the Industry Report

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

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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

More Events