Olympic Plastics Co. Inc. of Los Angeles closed its doors March 31, idling 70 workers. Olympic was a wholly owned subsidiary of Intek Diversified Corp., which merged Sept. 23 with Roamer One, a nationwide wireless telecommunications network.
Intek controller Gregg Marston said Olympic had not been profitable for some time.
Olympic made plastic components primarily for the aerospace and aviation industries, and electrostatic materials-handling products for the semiconductor industry.
After the merger, officials at publicly traded Intek ``determined after our evaluation that Olympic would require a large capital infusion to make the company profitable, and that it would be best to sell the assets to other companies with the infrastructure in place to make a go of the products Olympic produced,'' Marston said.
``Intek's commitment was to the wireless business rather than to the plastics industry,'' Marston said.
Olympic had three proprietary product lines, the assets of which were purchased by three separate, undisclosed companies. Assets included the molds, some production equipment and inventory. The buyers retained some manufacturing employees.
Olympic's custom molding equipment was sold to Industrial Assets Inc., a liquidator in Studio City, Calif., that will hold an auction May 24 at the Olympic Plastics building.
Equipment to be sold includes 14 injection molding machines, one a 1991 Husky with 1,000 tons of clamping force, plus granulators, chillers, three new hot-stamping machines and miscellaneous auxiliary equipment.
After the auction, Marston said, Intek will sell the building and land and invest the proceeds in Roamer One.