Mergon buys Dutchland Plastics blow molding assets

By Bill Bregar
Senior Staff Reporter

Published: March 22, 2013 2:44 pm ET
Updated: March 22, 2013 2:46 pm ET

Related to this story

Topics Mergers & Acquisitions, Blow Molding, Rotomolding

OOSTBURG, WIS. — Rotational molder Dutchland Plastics Corp. is selling its blow molding equipment — including three machines in a Greenville, S.C., plant — to Mergon Corp. in nearby Anderson, S.C.

The sale of the three machines in Greenville closed March 7, according to Mergon CEO Patrick Beirne.

Daven Claerbout, vice chairman of Dutchland Plastics, said his company also is selling the eight blow molding machines in Oostburg, Wis.

Dutchland, owned by brothers Carl and Daven Claerbout, first got into industrial blow molding in the mid-1990s at the headquarters plant in Oostburg, adding accumulator-head, extrusion blow molding machines.

Blow molding complemented Dutchland's rotational molding, allowing the company to offer both types of manufacturing processes. In early 2012, the rotomolder bought the Greenville assets of Continental Southern industries Inc.

Dutchland is returning to its original manufacturing focus of rotational molding. According to Plastics News' most recent ranking, Dutchland is the 21st-largest rotomolder in North America, with sales of $23 million.

Dutchland Plastics will use its know-how in blow molding to continue to provide complete offerings of parts made with both processes, and assembly.

Mergon Corp. is part of Mergon Group, based in Castlepollard, Ireland. Mergon also runs a plant in Brno, Czech Republic.

Mergon opened its South Carolina plant in 1998.

Beirne said the purchase is an opportunity to expand Mergon into larger blow molded parts and products.

"The biggest machine [at the Dutchland South Carolina operation] has a shot size of 60 pounds. That's one of the reasons we were interested in acquiring the assets," he said.

Terms were not disclosed.

Mergon, which does both blow and injection molding, serves the automotive, health-care and industrial markets.

"We are excited that Dutchland was able to come to an agreement with Mergon Corp.," Daven Claerbout said in a news release. "Mergon is a very reputable manufacturer of [blow molded products] and we know our former customers will be served very well. We also are happy with Mergon's decision to retain several of our former employees."

Beirne said the Greenville plant is about a 45-minute drive from Mergon's plant in Anderson. Mergon bought the equipment, not the building, he said.

For now, Mergon is operating the three blow molding machines at the Greenville location. Will the company move the equipment to Anderson? "We haven't made a final decision as to what the long-term future's going to be," he said by telephone.

Beirne said the capital investment comes because of the solid U.S. economy, and the need for larger-part capacity. "The U.S. for us is a buoyant economy compared to our operations in Europe — the Czech Republic and Ireland," he said.

Before the 60-pound blow molding machine, Mergon's largest machine could run a 35-pound shot.

"We wanted to add to our range in terms of shot size and this was a very attractive way for us to do it," Beirne said.

Mergon's U.S. factory also is boosting the size of its injection press fleet. Beirne said the South Carolina plant accepted delivery of a Nissei press with 625 tons of clamping force March 20. Before that, the biggest-tonnage press there was 300 tons, he said.

"Mergon has continued to grow rapidly in South Carolina with a strong customer base," he said.


Comments

Mergon buys Dutchland Plastics blow molding assets

By Bill Bregar
Senior Staff Reporter

Published: March 22, 2013 2:44 pm ET
Updated: March 22, 2013 2:46 pm ET

Post Your Comments


Back to story


More stories

Image

Vanee Foods adding hot-fill line

September 15, 2014 1:55 pm ET

Vanee Foods Co. expects to have a new hot-fill bottling line operational at its Broadview, Ill., facility by the end of this month.    More

Image

ZF finalizes deal to buy TRW, creating another global auto supply giant

September 15, 2014 1:09 pm ET

TRW Automotive Holdings, in a supply chain megadeal that has been in the works since mid-July, said Sept. 15 it has agreed to be acquired by German...    More

Image

Germany's Lehmann & Voss buys U.S.-based Performance Compounding

September 12, 2014 11:36 am ET

German compounding firm Lehmann & Voss & Co. KG has acquired Performance Compounding LLC for an undisclosed price.    More

Image

ATS goes global with acquisition of M+W Process Automation

September 10, 2014 2:49 pm ET

ATS Automation Tooling Systems Inc., a maker of factory automation systems in Cambridge, Ontario, has agreed to buy a German company M+W Process...    More

Image

DS Smith adds to footprint with Croatian injection molding acquisition

September 10, 2014 2:05 pm ET

DS Smith plc, the London-headquartered packaging giant, has announced the acquisition of Kaplast dd, a Croatian injection molding company.    More

Market Reports

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

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

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events