Carlisle Plastics Inc. plans to divest what it called ``two unprofitable businesses,'' including its rigid containers and private label grocery bag units. As part of a corporate restructuring plan, the company said Jan. 25 that it also will make a major expansion of its packaging and technical films group.
The company operates blow molding operations for water and juice bottles and dairy containers at Berwick and East Greenville, Pa., and Jessup, Md. The private label grocery bag lines are located at Portland, Maine, and Wellington, N.J.
Kim Baker, manager of investor relations, said the company will continue its production of the Ruffies brand high density polyethylene trash bags and can liners for mass merchandisers and the institutional market. It will expand production of its packaging and technical films at plants in Fairmont, Minn., and Thomasville, N.C.
``The execution of this restructuring will be largely completed by the second quarter of 1996,'' said William H. Binnie, Carlisle's chairman. ``Rather than build a new plant, we have decided to convert our 400,000-square-foot facility in Battleboro, N.C., to produce packaging and technical films product.''
The Battleboro facility now makes private-label grocery bags for the retail grocery market.
To finance the restructuring, Carlisle will incur a one-time, pretax, noncash charge of $34 million for the fourth quarter of 1995. Cash proceeds from the asset sales are expected to save $6 million annually in operating costs.
Carlisle of Phoenix also makes plastic garment hangers, and consumer, agricultural and commercial film and sheet products.