Lower electric rates have prompted California pipe extruder Apache Plastics L.P. to move its headquarters plant from Stockton, Calif., to Lodi, a few miles north. President Lawrence Beasley plans to move Apache to a long-vacant cabinet plant in Lodi.
``It is eight miles north of here and we shouldn't lose any employees,'' Beasley said by telephone from Stockton.
Beasley said the city-owned Lodi Electric Utility rates beat the price he now pays to buy electricity from Pacific Gas & Electric Co. He added that the city of Stockton adds a ``very aggravating'' 8 percent tax on electricity used.
Lodi City Council on June 19 approved electricity-rate discounts to lure Apache to the city. Beasley declined to say the rate. The deal to buy the building should close July 8, he said.
Apache extrudes PVC and ABS pipe.
The new location's size also was attractive. In Stockton, Apache occupies 68,000 square feet of space on 21/2 acres. The building in Lodi measures 115,000 square feet and it sits on 20 acres.
``It's a very large building that could've been designed to be a pipe plant,'' Beasley said.
Last fall, Beasley, facing competition from larger pipe companies, issued an announcement that he wanted to sell Apache or merge it with another company. The announcement generated some interest, ``but we didn't think we found exactly the perfect one, although we still have a few discussions going on,'' he said.
Beasley said two other Apache plants, in Lindsay and Santa Ana, Calif., will continue to operate. The company employs 140.
Sales for the fiscal year ended last Sept. 30 were $40 million.