By April, Prime Packaging Inc. will be making high density polyethylene T-shirt sacks and institutional trash can liners in Delano, Pa. The new firm will spend $4 million to build a 15,000-square-foot plant and install three extrusion lines by year's end, according to Steve Redlich, president.
Last month, PPI broke ground for the plant, which sits on 10 acres in Delano and adjoins a 70,000-square-foot facility owned by sister firm Poly Plastic Products Inc., Redlich said. The building should be ready Feb. 15, with two lines in place by April. The firm will employ 32.
``Once all three lines are running, we'll be doing approximately 15 million pounds a year in production of prime packaging,'' he said, noting that it is too soon to predict sales. ``We already have a customer base going into this project.''
The Schuylkill County Indus-trial Development Authority in Pottsville, Pa., is financing the project with a $4 million bond.
Redlich said he and outside investors own both PPI and Poly Plastic, which extrudes low density PE bags and sheeting. Industrial uses make up 80 percent of Poly Plastic's $12 million in sales. The rest is from institutional and government markets.
Poly Plastic's PE sheet protected helicopters from sand during the Persian Gulf war in 1991, and provided temporary tent housing the following year for victims of Hurricane Andrew, he said. The company, which employs 92, has 10 extrusion lines, processing about 21 million pounds of resin a year.
Rather than expand Poly Plastic, investors established a second firm because they wanted to distinguish clearly between the product lines - only PPI extrudes HDPE, Redlich said.