Delta Plastics Inc. plans to buy 45 injection molding machines and invest $18 million to expand its container closures business, the Hot Springs, Ark., company recently announced.
Delta will more than double the number of injection presses it operates in Hot Springs and boost its press tonnage range, according to Delta President Chris Rakhshan. It now has 40 presses, mainly 100-tonners, and will add 45 more with clamping forces as large as 250 tons for high-volume molding, Rakhshan said in a telephone interview.
Delta will add the machines during the next 18-24 months as it makes various new closure molds in-house. Delta is close to deciding on an injection molding machine supplier, but Rakhshan said he could not disclose the firm's choice.
By year's end, Delta will build a 150,000-square-foot production plant and warehouse next to its adjacent facility to expand total space to more than 330,000 square feet, he said. The company will install equipment for closure linings, jar labeling and offset printing.
Rakhshan said his firm began production in September 1993. It has grown rapidly and Rakhshan projects sales exceeding $20 million in 1997. He claimed he and the other four owners bring more than 90 years of container and closure experience to the company, although he would not disclose their former employers.
The Hot Springs operation makes proprietary single- and double-wall jars from polypropylene and polystyrene. Double-wall types include jars with PP inner walls and PS outer walls for better printing and decorating surfaces. Double-wall jars are assembled by snap fitting.
The firm sells jars from one-quarter to 32 ounces, mainly to cosmetic and personal-care markets.
Delta is establishing a closures division with the expansion. It now makes ribbed, smooth and domed closures for food, industrial packaging, personal-care and consumer markets.