Berry sells former Erie Plastics plant

Published: July 3, 2013 3:55 pm ET
Updated: July 3, 2013 4:01 pm ET

Related to this story

Topics Packaging, Mergers & Acquisitions, Injection Molding
Companies & Associations Erie Plastics Corp.

After several years, the former Erie Plastics plant in Corry, Pa., finally has a buyer.

The Corry Area Industrial Development Corp. purchased the building, Erie’s former headquarters, from Berry Plastics Corp. for $2.7 million.

The roughly 500,000 square-foot building will be divided up and leased to four tenants, said Rick Novotny, executive director of the development corp.

One, a packaging company that manufactures custom wooden and metal pallets for industrial applications, has already signed a lease. Two other companies, both involved in the oil and gas industry, have also expressed interest, he said.

Novotny would not name the companies until leases are finalized, likely in the next week or so.

Packaging giant Berry obtained the facility in 2008 when it acquired the assets of bankrupt Erie Plastics. The company put it on the market in 2010 and, through commercial real estate agency Jones Lang LaSalle, listed the property at $10 per square foot or about $5.1 million, according to previous Plastics News stories.

The plant never attracted a buyer, however. Berry took the building off the market and considered using it for its own operations.

The development corp. approached Berry about purchasing the building. The group was very interested in the facility for Corry’s sake and had tenants lined up, and because Berry was not going to use the building, the company sold it, said Kevin L. Wilson, director of corporate development at Berry.

Berry has facilities throughout the United States, many of them in small- to medium-sized communities where a manufacturing business is one of the drivers of the local community. The facility “is important to [the community] to keep the [economic] engine running,” Wilson said. “If we didn’t need the building, it made sense for them to have it.”

The $2.7 million was the market price for the building as-is, he said.

The development corporation purchased the building in a private transaction. The two parties negotiated within a very tight bid spread and did not take the building’s previous list price into account, he said.

“I think it was a good transaction for everybody involved,” he said. “It was a good business decisions both for them and for us.”

The building’s first tenants will bring 50-70 jobs to the area. When the building is filled to capacity, it could employ 250-300, Novotny said, adding that it could take 3-5 years to reach that point.

It’s not at the level of Erie Plastics, which employed close to 400 people before shutting down, but reflects changes in technology and improvements in automation, he said.

“[The plant] has been empty for four years. It was nothing for a long time. Putting 50 [people] in there is something,” he said.

Though the facility “was a really nice building set up for plastics companies,” it unfortunately hasn’t attracted any of them yet, Novotny said. He added that the companies interested in the building are all involved in northwest Pennsylvania’s oil and gas boom.

The facility, situated on 30 acres, was built in the 1960s and renovated in the early 2000s. Erie moved into the building in 2001 and ran 67 injection molding machines.

The plant was built in a way that makes it easy to subdivide. It’s hard to find one company that needs a half-million square foot building, but easier to attract several companies that need about 125,000 square-feet, Novotny said.

The building needs some minor repairs, but is move-in ready. If a plastics company did want to move in “They’d find a gorgeous plastics set-up with feedstock system silos, chillers… all that kind of stuff. It’s all still there” he said. “We’d be happy to get the company going.”

The Corry Area Industrial Development Corp. is part of the city’s industrial and community development arm. The group offers business support services including leasable facilities, low-interest financing, economic assistance and training and development.

 


Comments

Berry sells former Erie Plastics plant

Published: July 3, 2013 3:55 pm ET
Updated: July 3, 2013 4:01 pm ET

Post Your Comments


Back to story


More stories

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Universal Polymer beefing up capabilities through acquisition

July 29, 2014 12:04 pm ET

Universal Polymer & Rubber Ltd. is growing again and adding to its capabilities, this time via another acquisition and a plant expansion.    More

Image

Reynolds considering sale of Closure Systems International unit

July 29, 2014 10:32 am ET

Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.    More

Image

Carbon black supplier Orion begins trading on NYSE

July 29, 2014 11:29 am ET

Orion Engineered Carbons S.a.r.l. has priced the initial public offering of 19.5 million common shares at a price to the public of $18 per share.    More

Image

Evonik sells polyimide foams operation to Boyd

July 29, 2014 10:46 am ET

Modesto, Calif.-based Boyd Corp., a manufacturers of specialty material and sealing agents, has purchased Evonik Industries’ Solimid...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

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

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

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