Custom injection molder SPM Inc. of Anaheim, Calif., probably will be spun off after its parent company, Coats Viyella plc, restructures to focus on core thread and textiles businesses.
SPM had 1996 sales of $235 million. In Plastics News' recent survey of North American injection molders, the firm reported it runs more than 400 presses. In late December it opened its 16th plant, a $5 million facility in Guadalajara, Mexico.
Coats Viyella announced Dec. 23 it plans to split into two firms. Coats plc will comprise the Precision Engineering Division, which contains the Dynacast die-casting group and sister firm SPM; the Thread Division; and thread and textile producer Coats Viyella India Ltd.
Divesting Precision Engineering ``is a logical further step'' but the parent firm probably won't make a final decision on the divestiture before mid-1998, Coats Viyella noted in a news release.
Coats Viyella also plans to divest its clothing and household textiles businesses and form Viyella plc to hold its contract clothing, fashion retail, branded clothing and home furnishings units.
SPM Chief Operating Officer Andre LeBlanc said his firm will continue business as usual while its parent mulls the Precision Engineering spinoff. SPM's expansion plans include new facilities in Europe, Brazil and Malaysia. Although SPM is consolidating some U.S. operations, he predicted the addition of new facilities will give it 20 plants worldwide.
Precision Engineering could be sold or it might continue as a separate company, LeBlanc said in a recent telephone interview.
Dynacast acquired SPM in 1995 from Bace Manufacturing Inc. About a year later, Dynacast removed Mike Noggle, SPM president, and Larry E. Noggle, executive vice president, after disa- greements over SPM's direction.
