Lancaster Colony Corp. of Columbus, Ohio, boosted its automotive plastics business June 15 by purchasing the assets of Allied Plastics Inc. Allied, a Shelby, N.C., firm that filed for Chapter 11 bankruptcy April 27, molded funnels, mats, consoles and other proprietary automotive goods.
Lancaster Automotive Group President Jim Lockwood said the business complements his firm's production of automotive original equipment and aftermarket products, including Rubber Queen floor mats, truck bed liners and mud flaps.
Lancaster will move some molding and other equipment to its automotive group's main plastics plant in Jackson, Ohio. Lockwood did not disclose the size of Lancaster's or Allied's molding operations, however he said the purchase boosts Lancaster's injection press count by 60 percent.
Business First-Columbus reported on May 15 that Lancaster agreed to pay $5 million for Allied's assets. Lockwood, however, did not confirm that amount. Allied estimated sales this year would have reached $10 million.
Lancaster's automotive group had sales of $235 million last year, about a third of the company's total. It also makes salad dressing, vegetable dips and glassware, and is the largest U.S. producer of candles, Lockwood said in a telephone interview from Dublin, Ohio, where its automotive group is based.
Lancaster plans to sell Allied's 50,000-square-foot plant but is obliged to continue leasing two warehouses in Shelby, he said.
Allied officials, including acting President and Chief Executive Officer Dick Redden, did not return telephone calls requesting comment. Lockwood said Lancaster has not decided if it will retain any Allied managers.
Allied Plastics earlier sold its Lake Murray Plastics Division in Shelby, and its Acme Automotive and Gastonia Allied Holiday units in restructuring moves, according to The Business Journal of Charlotte, N.C. Allied Plastics also closed Allied Packaging Inc. in Monroe, N.C. Company officials were not available to answer questions about whether those businesses had significant plastics operations.