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 Food service, Packaging, Injection Molding, Thermoforming

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

Report predicts growth for flexible packaging

August 21, 2014 12:34 pm ET

Flexible packaging in the United States grew last year and is expected to continue to grow this year, according to a new report by the Flexible...    More

Image

German injection molders Metz-Werke and Inotech to collaborate

August 21, 2014 11:47 am ET

German injection molding companies Metz-Werke GmbH & Co. KG and Inotech Kunststofftechnik GmbH have announced that they have joined forces to bring...    More

Image

Enor expanding in S.C., moving toy production to U.S. from China

August 20, 2014 4:01 pm ET

Wal-Mart Stores Inc. has convinced toy producer Enor Corp. to expand U.S. production at the expense of sourcing from China.    More

Image

Venture Plastics adds 720-ton press

August 20, 2014 2:03 pm ET

Venture Plastics Inc. expanded its El Paso, Texas, custom molding facility in early summer to grow sales.    More

Image

Faerch Plast doubling capacity in UK

August 20, 2014 9:42 am ET

R. Faerch Plast A/S, one of Europe’s leading producers of plastic containers for the food industry, is set to double production capa...    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