Sealaska sells JV share to Nypro

By Frank Antosiewicz
Correspondent

Published: July 3, 2013 4:08 pm ET
Updated: July 3, 2013 4:11 pm ET

Related to this story

Topics Mergers & Acquisitions, Joint Venture, Consumer Products, Electronics, Medical, Packaging, Injection Molding
Companies & Associations Nypro Inc.

Sealaska Corp. is getting out of injection molding and manufacturing, with the sale of its 51 percent stake in three facilities that it had held as joint ventures with Nypro Inc.

The facilities, which were collectively known as Nypro Kánaak, are located in Dothan, Ala.; Mount Pleasant, Iowa; and Guadalajara, Mexico.

All three plants served the healthcare, packaging and consumer electronics markets. Clinton, Mass.-based Nypro — which was recently sold to Jabil Circuit Inc. — is buying Sealaska’s stakes.

Nypro spokesman Al Cotton said the plants will continue to operate as part of Nypro.

Juneau, Alaska-based Sealaska is a Native institution owned by more than 21,000 tribal member shareholders. The company worked with Nypro to gain minority status for the joint venture to go after government and commercial contracts.

Sealaska took a majority stake in the Guadalajara plant in 2002, in Mount Pleasant in 2004 and in Dothan in 2006. The company had started in plastics in 1997 with the formation of TriQuest Corp., which later became Kánaak.

Sealaska President and CEO Chris McNeil Jr. said in a letter to shareholders that “our experience with plastics injection molding had its ups and downs. While we experienced significant losses through 2001, our strategic relationship with Nypro through the formation of Nypro Kánaak and our re-focus on consumer packaging led to successful relationships with customers like Procter & Gamble, Kraft, Clorox, Dell and many others.”

He said that a minority-owned business must be as competitive as a non-minority business. The competitive advantage must also be complemented by a business that has strong operating margins.

McNeil said that even with the supplier diversity advantage, it was difficult to compete in a less profitable, low-margin sector.

Sealaska is changing its portfolio of companies to simplify operations, improve profitability and align operating companies more closely with its core Native values, he said.

“This sale represents an opportunity to transform future earnings into cash that we can now reinvest into initiatives that are aligned with our core values, said Sealaska Chairman Albert Kookesh, in a statement.

McNeil added that the sale was made from a position of strength and will strengthen the Sealaska balance sheet.

He said Nypro Kánaak had been recognized by the National Minority Supplier Development Council as a “Corporate Plus” supplier and had received many other awards. He extended his appreciation to the employees, Nypro and customers for their efforts.


Comments

Sealaska sells JV share to Nypro

By Frank Antosiewicz
Correspondent

Published: July 3, 2013 4:08 pm ET
Updated: July 3, 2013 4:11 pm ET

Post Your Comments


Back to story


More stories

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United...    More

Image

Adding flavor to capture sales

April 16, 2014 4:03 pm ET

Water bottles increasingly are designed and molded with filters and infusers to hold fruit, vegetables or herbs to give water a different taste.    More

Obituary: Shirish Patel, former Newell Rubbermaid purchasing director

April 16, 2014 3:55 pm ET

Shirish Patel, former director of purchasing at Newell Rubbermaid Corp. and a longtime plastics industry veteran, has passed away at age 70.    More

New Tigre, ADS JV aims to open more doors for Tigre in US

April 16, 2014 12:15 pm ET

A new joint venture between Tigre S.A. Brazil, a leading PVC pipe maker, and Advanced Drainage Systems Inc., the world's largest high-density polyethy...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events