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 Mergers & Acquisitions, Packaging, 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

Image

China's biggest fuel tank maker getting a US foothold

April 23, 2014 4:41 pm ET

The majority owner of China's biggest fuel tank maker is expanding its global automotive footprint with the acquisition of the fuel tank unit of...    More

Image

How CEO Santi is changing ITW

April 23, 2014 2:48 pm ET

Scott Santi is showing he can do more than just cut costs at Illinois Tool Works Inc.    More

Quality Vision buys ShapeGrabber

April 23, 2014 10:19 am ET

Quality Vision International Inc. of Rochester, N.Y., has purchased ShapeGrabber Inc., a maker of automated three-dimensional scanners, in a deal...    More

Image

Pregis Corp. to get new owner

April 22, 2014 11:44 am ET

The private equity owner of Pregis Corp. is selling off its North American operations for an undisclosed sum.    More

Image

German electronics firm expanding in Hungary

April 22, 2014 9:46 am ET

German electronics manufacturer Provertha GmbH has announced plans to set up a new plastic galvanizing plant at the Kapuvár Industrial Park, in northw...    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

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

Mold Making and Tooling Review and Outlook 2014 – North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

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