Film maker AEP Industries will not invest in an expansion of Amcel Corp.'s Louisville, Ky., film and cutlery plant, even though an earlier AEP news release said the firm would take that step as part of a recently announced alliance between the two companies.
Amcel of Watertown, Mass., is adding three extrusion lines and two injection molding lines in Louisville, where the firm currently operates 16 extrusion and 10 injection molding lines.
``The discussions between the companies do not contemplate an investment by AEP in Amcel, either for the expansion of manufacturing lines or for any other purpose,'' AEP officials said Jan. 13.
The statement contradicted a Jan. 7 AEP release quoting Executive Vice President John Powers as saying AEP ``has made an investment in Amcel in order to expand their capacity.''
Powers and Amcel President Brad Gordon said the alliance, which is unaffected by AEP's retraction of its previous statement, will benefit both companies by providing AEP with access to Amcel's can liner and cutlery products while giving Amcel a broader sales presence.
The Louisville expansion will create 15 new jobs and is scheduled to be completed in the first quarter of 1998. The site has been Amcel's only manufacturing operation since the company closed its Edison, N.J., plant last summer.
Gordon confirmed AEP would not be investing in his company's expansion, but he declined to comment on future financial dealings between the two companies.
