Seda Specialty Packaging Corp. continues its drive for growth, announcing May 24 it has entered the plastic bottle market with a line of PET bottles. The Los Angeles-based manufacturer of plastic tubes and injection molded closures signed a contract to make a series of PET specialty water bottles ranging in size from one-half liter to 1 liter, the company announced.
Shawn Sedaghat, Seda chairman, president and chief executive officer, would not disclose the name of the PET bottle customer, which began receiving shipments May 22. Seda serves the food, beverage and cosmetic markets.
Sedaghat said the investment, about $4 million, is logical.
``The systems and procedures we have implemented in our tube and closure operations adapt almost seamlessly to bottles,'' Sedaghat said.
The market potential for bottles looks promising, he said, particularly in the western United States, where consumption of bottled drinking and flavored waters is increasing steadily.
Part of the investment involved the purchase of stretch blow molding machinery, Sedaghat said. He would not disclose the number or size of the machines purchased. Seda also plans to injection mold its own preforms.
``This will allow us to control our own destiny,'' Sedaghat said in a telephone interview.
Seda is historically an injection molding company, but as its line of plastic tubes has grown, the company has become a substantial buyer of injection molded dispensing closures.
Sedaghat hopes to change that situation. The company is looking at manufacturing its own dispensing closures, he said.
``We're continually working on developing new projects that will help our company'' to cut costs, he said.
In January, Seda purchased American Safety Closure Corp. of Plattsburgh, N.Y. The purchase gave Seda manufacturing and distribution business in the eastern United States. Seda reported $30 million in sales in 1994.