Plastics compounder and sheet extruder Doeflex plc is expanding a new plant in Warrington, England, using new equipment plus machinery from two recently acquired companies.
Doeflex of Redhill, England, took over engineering plastics compounder Perrite Plastic Compounds Ltd. of Risley, England, a year ago. It now plans to switch the Perrite machinery to the newly leased, 70,000-square-foot plant in nearby Warrington.
Doeflex already has invested £500,000 ($815,000) in a new, 6.6 million-pound-per-year Werner & Pfleiderer compounding extrusion line that was commissioned in late March at Perrite's Risley plant. That took the subsidiary's capacity to more than 22 million pounds per year.
The firm now plans to add another 6.6 million pounds per year of new capacity at Warrington early next year, in addition to the existing equipment from another 1996 Doeflex acquisition, Synlon Ltd. Leeds, England-based Synlon produces glass-reinforced, flame-retardant and other nylon compounds.
Before these moves, the large Warrington facility is being thoroughly refurbished.
The $1.63 million project will allow the company to become more efficient and to close three plants, said Chairman Richard Bickerton. Most jobs will be secure since the new plant is close to Risley.
The plants being closed include two Perrite operations at Risley and the Synlon unit at Leeds.
Doeflex also has closed down one of two Perrite rubber compounding plants, halving its rubber compounding capacity.
Doeflex reported pretax profit of £3 million ($4.8 million) for the first half of 1997, up 23 percent from the same period a year ago. The firm reported a 31 percent increase in sales, to £43 million ($70 million).
The company also inked a deal with another compounder, Alfordshire Ltd. of Whitney, England.
Alfordshire and its partner, David King, will transfer two PVC compounding lines from their A.L.F. Compounds Ltd. operation at Glossop, which will close. The lines will move to Doeflex Vinyl Ltd. in Swindon, England.
Doeflex Vinyl will use the lines to handle shorter runs suitable for the small extrusion and injection molding markets.
The deal allows Alfordshire exclusive rights to distribute compounds produced both by Doeflex Vinyl and Perrite.