Triple S Plastics Inc., an injection molder in Vicksburg, Mich., is closing its Victor Plastics plant and consolidating its operations at two other nearby facilities in a move to increase production efficiency.
The 40,000-square-foot plant, located in Vicksburg, will shut down by June 30, said Chief Financial Officer Robert Monk. The plant's 19 presses will be shifted to another Triple S plant in Vicksburg and a facility in Battle Creek, Mich. The presses have clamping forces of 55-385 tons.
The plant also will transfer an undetermined number of its 120 employees to the other plants, Monk said. The firm expects to complete the consolidation by the first quarter of next year.
The decision to shutter the plant was a cost-cutting one. The other plants had the capacity to absorb production from the Victor Plastics facility, Monk said. The 8-year-old plant operates at 65-70 percent of capacity, he added.
The Victor Plastics plant also is constrained in its growth potential. The plant's low ceilings prohibit large presses from being installed there or mold changes to be made by overhead crane, Monk said. The plant also does not have room to add administrative offices, he said.
``We were looking for opportunities to get economies from our operations,'' Monk said. ``The three plants are close together and we had space for the presses at the other facilities. The [Victor Plastics] plant has too many limitations for it to operate efficiently.''
The three Michigan plants mold parts for a variety of automotive and information technologies applications, including the manufacture of plastic parts for bar-code scanners.
The company also is consolidating its mold-making and design operations. The company will close its A-Tech Mold facility in Schoolcraft, Mich., by July 31. The tool shop's 31 employees and equipment will be transferred to the company's Satellite Mold operation, which operates from its Vicksburg plant.
The publicly held company reported financial results for its fiscal year, which ended March 31. Annual sales increased 5 percent to $64.6 million from $61.2 million the previous year. Net profit was $1.3 million, or 36 cents per share, compared to $1.03 million, or 28 cents per share, the previous year.
Triple S ranked 76th among injection molders in North America during 1996, according to Plastics News' annual, sales-based ranking.
The company also molds parts for the consumer products, telecommunications and medical markets. Triple S has plants in Tucson, Ariz., and Georgetown, Texas, in addition to its two remaining Michigan facilities.