CKS pays $5.7 million for Mar-Kay assets
KANSAS CITY, MO.—CKS Packaging Inc. bought the assets of blow molder Mar-Kay Plastics Inc., which had filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
The Kansas City Business Journal reported CKS of Atlanta paid $5.7 million, outbidding two undisclosed other companies. The article said $4.1 million of the payment will go to Mar-Kay's principal lender, Mercantile Business Credit Inc.
Mar-Kay, based in Kansas City, filed for Chapter 11 protection early in January and closed its Morristown, N.J., plant early this year to reduce debt. The Kansas City paper said CKS bought Mar-Kay in May.
Plastics News estimated Mar-Kay's sales last year at about $20 million while CKS had blow molding sales of about $65 million. Officials at the two companies were unavailable to provide more detail by press time.
Calif. trash bill fails in committee
SACRAMENTO, CALIF. — Assemblywoman Debra Bowen applied the brakes July 7 to a compromise bill on recycled content for trash bags in California.
The Torrance Democrat objected to national criteria in the bill at the Assembly's Natural Resources Committee hearing, which she chaired. Senate Bill 698 ``may reward manufacturers who are already using [recycled plastic post-consumer material] in other parts of the country'' and ``may mean they do not need to do anything'' in California, Bowen said.
She suggested elimination of the existing law's thickness standard as arbitrary. All bags with a thickness of three quarters of a mil must contain at least 30 percent recycled material under current law. The bill calls for manufacturers to use only the amount of material they were required to use in 1996.
Most trash bag manufacturers and, tacitly, polymer recyclers supported SB 698, which environmental group Californians Against Waste opposed. The bill needed seven votes for committee passage but received five. Bowen said the committee will reconsider SB 698 July 14.
``I am cautiously hopeful'' about passage, said Bob Vetere, director of government relations of First Brands Corp. of Danbury, Conn. Discussions with members of the California Film Extruders & Converters Association of Corona del Mar, Calif., led to the bill, which proponents say would increase both the use of post-consumer resin and processors' flexibility.
The Senate approved the bill 27-0 on May 27.
ABT closing Iowa injection molding plant
NEENAH, WIS. — ABT Building Products Corp. of Neenah on July 7 announced it is closing an injection molding plant as part of a restructuring effort.
ABT is shutting down its Independence, Iowa, plant and moving the equipment there to an existing plant in Hopkinsville, Ky. The company aims to consolidate its injection molding and thermoforming operations into one location, and to drop a sideline to its building products business.
``We are phasing out of the custom molding business and putting emphasis and focus on building material business,'' George Brophy, ABT's chairman, president and chief executive officer, said in a telephone interview. ``Custom molding is not our mainstream business, and we want to focus on the kind of things we do well.'' Those things include vinyl, wood and fiber cement exterior products.
The Kentucky plant also had been doing custom injection molding, but those operations will cease as the facility concentrates on shutters, he said. The Iowa plant employs about 20.
The company will take a $10 million accounting charge to cover restructuring costs, Brophy said.
ABT's stock closed at $23.50 July 9 on the Nasdaq exchange, down about $3 from its close the week before the restructuring was announced. The drop came despite record first-quarter earnings of $6.2 million on sales of $77 million. ABT reported 1996 sales of $320.4 million.
Wis. man wins weekend at space camp
AKRON, OHIO — Plastics News selected Jim Sake, manufacturing manager with Dickten & Masch Manufacturing Co. in Nashotah, Wis., as the winner of an all-expenses-paid weekend for an adult and child at Space Camp.
Sake was one of about 15,000 visitors to Plastics News' main booth at NPE 1997 in Chicago, where the entry forms for the drawing were collected.