Duro Bag Manufacturing Co. has merged its plastic bag operations into a joint venture with Superbag Corp. of Houston.
Duro President Ivan Hughes said the venture hopes to set up a new film and bag facility ``in the near future'' but the partners will work out details such as location and product mix during the next few months. Duro and Superbag also will decide how much each firm holds in the venture, Hughes said in a telephone interview from Duro's Ludlow, Ky., head office.
Duro's Richwood, Ky., operation extrudes polyolefin films and converts them to merchandise and T-shirt bags.
Superbag extrudes monolayer and coextruded polyethylene films in Houston. It converts some of its output to grocery, T-shirt and other bags and also sells form, fill and seal films to outside converters, said Simon Bazbaz, its president and cofounder.
Bazbaz said the venture should help his company become a low-cost producer, since it will improve production scheduling and distribution.
He and his partners established Superbag in 1988 after logging about 20 years of experience in the flexible packaging industry with other companies.
Bazbaz would not disclose Superbag's sales or equipment details.
Hughes said the venture eventually might relocate some of Duro's equipment. Duro's work with Cargill Inc.'s EcoPla compostable bag technology also could be included in the venture's mandate, according to Hughes. Since 1990 Superbag occasionally has made plastic bags for Duro on a contract basis.
Duro operates several paper bag facilities, but Richwood is its only plastics-oriented plant. The private firm's sales exceed $300 million annually.