Sonoco Products Co. has signed a letter of intent to sell its PET plastic container plant in Greenville, S.C., to Ring Can Corp. Terms of the agreement were not released.
The acquisition adds PET containers to Ring Can's product lineup, which includes high density polyethylene and PVC bottles.
While this sale does not include all of Sonoco's blow molding operations, the Greenville plant is Sonoco's only PET operation. The 25-employee plant makes tennis ball containers.
``While this was a strong operation for Sonoco, it does not fit with our major product lines,'' said H.J. Moran, executive vice president in charge of Sonoco's consumer packaging, in a news release.
Sonoco's major product lines include tubes, cores and cones for industrial use made from converted paper products. On the consumer side, Sonoco makes HDPE film and packaging products. It ranked 36th in Plastics News' 1996 survey of North American blow molders, with estimated sales of $36 million.
Ring Can, based in Oakland, Tenn., blow molds products such as beverage, food and chemical containers. It has 29 plants and 900 employees. The firm ranked 16th in Plastics News' 1996 ranking, with sales of $110 million.
``We look at this as a significant opportunity to expand our product offerings,'' said Ring Can President Ben Livingston in a news release. He said the company plans to continue serving the same customers.
The companies hope to have the sale completed before the end of the year. Sonoco will continue to provide the plant with metal-end closures for the tennis ball containers.
Sonoco is based in Hartsville, S.C.