Atlantis Plastics Inc. will sell its Plastic Containers Inc. blow molding unit and drastically reduce operations at its Tulsa, Okla., custom film plant as part of a massive corporate restructuring begun last year. A. Richard Hurwitz, vice president of corporate communications for the Atlanta-based firm, said all but three of 15 polyethylene film lines will be removed from the Tulsa facility and relocated to Atlantis' Mankato, Minn., film plant.
``The remaining three lines will operate as satellites to those at our Cartersville, Ga., plant,'' he said by telephone from his Miami office. ``Tulsa was our oldest film facility, and as such was the least efficient.''
He confirmed that the company also plans to sell Plastic Containers Inc. as a separate business. The Demopolis, Ala., firm molds containers for dairyproducts, water and juice, and industrial containers. It was 53rd on Plastics News' 1995 ranking of North American blow molders with about $25 million in annual sales.
``In the second quarter of last year, we announced that our new management team would be taking a hard look at all of the company's operations,'' Hurwitz said.
``We committed to overhauling the company to make the focus clearer on areas where we can be significant players. That process led to this concentration on films and injection molding, and the divestiture of the blow molding operations.''
Atlantis in September jettisoned the other piece of its blow molding business when it sold its 50 percent interest in CKS/Rigal Joint Venture Inc. to CKS Packaging Inc., its Atlanta-based partner in the venture. CKS-Rigal had plants in Orlando, Fla., and Dallas.
To accompany this new round of restructuring, Atlantis also announced it would record pretax restructuring and other non-recurring charges totaling $12.5 million in its fourth quarter of 1995.
The charge includes $11.6 million for nonrecurring restructuring costs, of which $10.6 million is a write-down of goodwill and fixed assets of the Tulsa and Demopolis plants.
The remaining $1 million cost was associated with the changeover of its sales and marketing capability from outside sales representatives to in-house services.
An additional $900,000 expense was incurred for inven-tory, legal and miscellaneous costs related to unspecified changes made at the company's Cyanede Plastics Inc. injection molding unit and will be included in the cost of goods sold.
Atlantis produces stretch and custom film for industrial, agricultural and consumer markets and ranked 28th in Plastics News' 1995 survey of North American film and sheet producers, with $173.9 million in annual sales.
The company's Cyanede injection molding subsidiary, based in Henderson, Ky., ranked 65th in the 1995 survey of North American injection molders, with $55 million in annual sales.
Cyanede's molded products are for the appliance, automotive, agricultural, dairy, and recreational vehicle industries.