BRANTFORD, ONTARIO - Plastics recycler Resource Plastics Inc. has completed its financial restructuring and is clear of creditor protection, the Brantford firm announced March 18. Two existing shareholders, one of which is an institution and the other an individual investor, put up C$300,000 (US$220,500) to pay unsecured creditors 13 cents on the dollar. The shareholders also committed an undisclosed amount of money for working capital and capital projects, said Douglas Matthews, Resource president and chief executive officer. Matthews did not disclose Resource's new ownership structure.
More than 90 percent of Resource creditors voted for the restructuring plan Jan. 15. Matthews said the court approved the plan Feb. 6. The two Resource shareholders came to the rescue after an earlier plan to sell the company to SCL Technologies fell apart when SCL could not secure enough financing. Resource faced automatic bankruptcy if it did not come up with a creditor-approved plan by the middle of January.
Matthews said Resource's film recycling operation is running at about 60,000 pounds per day and the firm will boost film reprocessing to about 68,000 pounds daily within a few months as it expands post-consumer sourcing in Canada and the United States. It also recycles bottles.
Molder sees silver lining in GM strike
CHICAGO - The March 6 strike that hamstrung General Motors Corp. may be healthy for the injection molding industry by giving small molders machine time for evaluation and prototyping, said John Hoyt, president of Great Lakes Molding Inc.
A small piece - only 4-5 percent - of the Galesburg, Mich., company's business comes from an undisclosed customer that supplies GM, though auto parts make up roughly 40 percent of its total sales, Hoyt said March 19 from the National Design Engineering Show in Chicago. The strike idled two of Great Lakes' 33 presses, though the firm is using one free press for prototyping and research and development ``at our busiest time of the year,'' he said. Because of highly automated operations, which have just two workers running 14 presses in that production unit, none has been laid off.
Hoyt said he expects the strike to have ``a pretty big ripple effect'' among Michigan molders, especially if the strike lasts.
``Two weeks is good, four is bad,'' he said. ``If it gets beyond 30 days, it will affect a lot of bottom lines, not only production, but withholding of inventory. There are going to be businesses that will be hit a lot harder than we are.''
Bestes changes name, adds presses
NASHUA, N.H. - Custom and captive molder Bestek Inc. of Nashua changed its name March 4 to Mija Precision.
Sales manager Joel Beaudette said the change will lower purchasing and other costs and help the firm capitalize on the reputation of its parent company, Mija Corp. of Plymouth, Mass. Mija Corp.'s Mija Industries division in Plymouth is a leading producer of gauges for fire extinguishers and other equipment, he said.
Beaudette said about a quarter of the firm's sales are injection molding jobs for Mija's gauges. Mija Precision's custom molding business includes electromagnetic interference shielding and precision parts for fire protection, athletic, electronic, medical and retail product markets, using reinforced nylons, polycarbonates and other engineering resins.
Mija Precision spent about $500,000 in the past year to add three new injection presses, to upgrade and expand its captive toolmaking operation, and to add computer equipment. Its current 11 presses, with clamping forces of 40-310 tons, should provide enough molding capacity for this year's needs.
Mija bought Bestek six years ago. Beaudette would not disclose sales for privately held Mija Corp. or its Mija Precision Division, but said Mija Corp. has about 150 employees.
Pawnee promotes Paulson to president
MAPLE PLAIN, MINN. - Pawnee Rotational Molding Co. L.P. on March 14 promoted Larry Paulson to president. He joined the company in February 1995 as materials manager and was promoted to vice president of manufacturing in May 1995.
He previously worked at Bemis Co. Inc., FMC Corp. and Caterpillar Inc.
Pawnee Rotational Molding of Maple Plain was purchased by Madison Capital Partners, a Chicago financial group, in 1995.