Continued operating losses at its Kinpak packaging subsidiary prompted parent firm Kinark Corp.'s decision to sell or close its Montgomery, Ala. plant. Kinpak is a proprietary and custom packager providing blow molding, formulation, fill and distribution of windshield washing fluids, antifreeze and household cleaning products. The subsidiary reported a loss of $323,000 on sales of $4.3 million for the first six months of this year. That falls on the heels of 1994 losses of $851,000 on sales of $8.6 million.
``Despite recent efforts to expand Kinpak's product lines and penetrate new markets, the growth we expected this year has not materialized and the company must step away from this operation and concentrate on other opportunities,'' said Paul R. Chastain, Kinark's president and chief executive officer.
Chastain said in a telephone interview last week that Kinpak operates two Uniloy blow molding machines, along with a diverse line of automated labeling and filling equipment. The business continues to operate as the antifreeze season approaches.
``As that season winds down we'll be in a position of closing the plant,'' said Chastain. ``Ideally, we don't want to close but we have a very narrow product line and are looking for a buyer who can operate the plant and utilize the unused capacity.''
Kinpak has a proprietary line of household cleaning products it sells through Sam's Warehouse stores. The division employs 40.
Kinark, based in Tulsa, Okla., will take a one-time charge of about $1.5 million pre-tax against results in the third quarter for discontinuing the subsidiary.
Kinark plans to concentrate on its core business of providing metals corrosion protection for commercial, construction and industrial markets from its hot dip galvanizing plants in Denver, Houston, Dallas, Louisville, Nashville, Tenn., and St. Louis.
