Russell-Stanley, CMS merge into one firm
RED BANK, N.J. — Russell-Stanley Corp., a plastic and steel drum manufacturer, has merged with Container Management Services Inc. to form a new company.
Russell-Stanley and Simpsonville, S.C.-based CMS will be sister firms under a new holding company, Russell-Stanley Holdings. The firms will be headquartered in Red Bank, Russell-Stanley's current headquarters. Terms of the merger were not released.
``This is a strategy to develop a strong position in industrial container supply-chain management,'' said Robert Singleton, president and chief executive officer of Russell-Stanley.
Vestar Capital Partners Inc. of New York has recapitalized the entire company. The new firm combines the scope of Russell-Stanley's steel and plastic drum manufacturing with those of CMS' plastic drum and intermediate bulk container leasing, pickup, return logistics, reconditioning and closed-loop management services. Together, the companies employ more than 900.
Russell-Stanley plastic drums will become a bigger segment of its business, Singleton said. The firm blow molds high-molecular-weight high density polyethylene drums in its eight plants. The drums, ranging from 5-60 gallons, are used by chemical firms. The majority sold are 30-55 gallons.
CMS leases drums and industrial bulk containers and provides on-demand delivery. Customers fill the containers and ship them to clients. When containers are empty, CMS picks them up and cleans, inspects and tests them.
Unusable drums are ground and the flake is sold. Although CMS does not make recycled-content drums, it does have an interest in getting involved in it, Singleton added.
NMC buying firms from Microplastics
NEW YORK — NMC Corp. of New York will acquire two of Miami-based Microplastics Inc.'s Medley, Fla., companies.
Universal Vinyl Corp., which makes plastic vertical Venetian blind blades, will be acquired for $1.5 million through a combination of cash and stock. It had sales of $4 million in 1996.
Microplastics broke out certain operations and formed Plastech Pallet Corp. to sell to NMC. Plastech will recycle waste plastics to manufacture pallets, using a $3 million Wilmington Machinery press.
Heinz swaps glass for plastic bottles
PITTSBURGH — H.J. Heinz Co. is phasing out its 14-ounce glass ketchup bottles and replacing them with plastic.
``What we're finding is that consumer demand for plastic is increasing just due to the safety and recyclability,'' said Deb Magness, a spokeswoman for Pittsburgh-based Heinz USA.
The changeover will be complete next year. The virgin PET multilayer bottle is molded by Continental PET Technologies Inc. of Florence, Ky. Retail price of the product is 99 cents.
``It costs us more to produce it but the price increase will not be charged to the customer,'' said Cheryl Stewart-Miller, another Heinz spokeswoman.
Restaurants, however, will be able to buy ketchup in the 14-ounce glass bottle, because it is an icon, the company said. All 32-ounce bottles will continue to be made in glass. All other sizes, from 14-72 ounces, will be manufactured in plastic, with the 28-and 40-ounce bottles containing layers of post-consumer PET.