MADISON, MISS. - Enticed by growth rates three times what they are in its core business, Southern Bag Corp. of Madison is entering the plastic bag market for the first time. The company, a leader in manufacturing multiwall paper bags for the seed, feed, pet food and agricultural chemical markets, is buying Sengewald USA Inc., a plastic extruder and bag maker based in Marengo, Ill.
``Growth in the multiwall bag industry is only about 1 percent to 2 percent,'' said Dan Dickinson, director of quality for Southern Bag. ``But in the plastic bag market the growth is about 6 percent to 7 percent, so we needed to be in this business.''
Sengewald had been a division of NV Koninklijke KNP BT, of Amsterdam, the Netherlands. Sengewald makes a wide range of polyethylene bags, bubble cushioning, and monolayer, coextruded and laminated films for packaging. It operates bag-making plants in Marengo; St. Paul, Minn.; and Grand Forks, N.D.
Dickinson said Sengewald will become a division of Southern and will change its name to Hood Packaging. It will continue to make monolayer films, laminations and coextruded films.