Compounder expands in Wisconsin, plans acquisitions in China

By Frank Esposito
Senior Staff Reporter

Published: December 9, 2013 5:06 pm ET
Updated: December 13, 2013 1:58 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers

Materials firm Saco Polymers Inc. is building a 20,000 square-foot corporate office at its headquarters site in Sheboygan, Wis.

Saco — a supplier of cross-linked compounds and similar products — also has signed a letter of intent to buy two Chinese compounding plants, although that deal hasn’t been completed.

The office will be in the same industrial park that includes the firm’s 140,000-square-foot manufacturing plant. Saco has received a $900,000 loan from the Wisconsin Economic Development Corp. for the project. The new office will house the firm’s administrative and sales staff, as well as expanded research and design operations.

Saco “made a strategic decision” to choose Sheboygan County for the expansion, according to Tom Wurm, human resources director for Aesse Investments Ltd., Saco’s parent firm.

“Michigan and Ohio were under consideration, but we’ve been very successful with the Sheboygan County employee base and business partners here,” he said in a news release.

Saco now plans to grow aggressively over the next five years. “If we’re not doing something new, if we’re not gaining market share, we’re losing market share,” Wurm said. “Successful companies don’t stand still. Our track record of growth … is a testament to that.”

Wurm credited the Sheboygan County Economic Development Corp. — and its director Dane Checolinski — with connecting Saco with key municipal and state decision makers. “They made dealing with the government easy for us,” he said.

The Chinese deal includes Saco paying about $15 million to buy the two businesses — operating as Suzhou Huiye Chemical & Light Industry Co. Ltd. and Suzhou Huiye Plastic Industry Co. Ltd. — from Singapore-based materials firm Dynamic Colours Ltd. for about $15 million, according to an Asian media report. Both firms are in Jiangsu province and make color compounds for the electrical and electronic appliance market, according to the report.

The acquisition is being made through AEI Compounds Ltd., a British compounding firm that Saco bought for almost $14 million in 2011. Saco will post annual sales of more than $100 million in 2013 — more than double 2006 levels — primarily making compounds for the wire and cable and pipe markets. The firm’s sales have been growing at a 15 percent annual rate.

Saco also owns and operates a plant in Michigan, as well as specialty compounder Macromeric in Aurora, Ohio.


Comments

Compounder expands in Wisconsin, plans acquisitions in China

By Frank Esposito
Senior Staff Reporter

Published: December 9, 2013 5:06 pm ET
Updated: December 13, 2013 1:58 pm ET

Post Your Comments


Back to story


More stories

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

DSM planning North American nylon plant

July 22, 2014 11:41 am ET

Materials firm Royal DSM NV plans to build a new nylon resin plant in North America, but no decision has been made on the plant's exact location.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

China launches investments in Belarus

July 21, 2014 10:10 am ET

China is preparing to invest in a major bottle grade PET production project planned by the Belarus PET and polyester fibers producer...    More

Image

Huhtamäki to evaluate its films business

July 21, 2014 9:52 am ET

Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its growin...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

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

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

More Events