Plastic container blow molder Plysu plc of Milton Keynes, England, plans to enter PET blow molding by purchasing AMK Plastics Ltd. of Cardiff, Wales. Plysu financial director Stephen Nobbs said his firm expects to complete the purchase in early November. It will pay an undisclosed amount of cash for AMK, which has annual sales of about 7.5 million ($11.9 million).
Nobbs said in a telephone interview that Plysu has looked at entering PET container production ``for some time'' and decided privately held AMK presents a good opportunity to expand its technology and markets. AMK blow molds PET, PVC and high density polyethylene bottles for cosmetic, pharmaceutical and personal-care markets.
Plysu mainly blow molds HDPE containers for a range of markets. Blow molding accounts for about 95 percent of its sales, which were 100 million ($158.1 million) for the fiscal year ended March 31. The company also injection molds caps, closures and housewares, and makes protective clothing.
Nobbs said Plysu is the United Kingdom's largest molder of milk and juice bottles, a growing market as doorstep delivery is replaced by grocery market sales. He also claimed his company is the third-largest consumer of HDPE for bottles in Europe.
Nobbs said Plysu has 12 plants throughout Europe, compared with AMK's one facility in Cardiff. He predicted Plysu, a public firm traded on the London Stock Exchange, will have sales of about 135 million ($213.3 million) this fiscal year, partly because high raw material costs are inflating its selling prices.
Plysu continues to seek acquisitions and also is examining possible blow molding joint ventures in North America, he said.
Plysu helped set up a local plastics recycling center anduses curbside-collected HDPE to mold containers, trash cans and other products.
Its recycling work garnered it a $25,000 environmental award from Husky Injection Molding Systems Ltd. of Bolton, Ontario, earlier this year.