ABC Group expanding into South America
TORONTO — Blow molder ABC Group of Cos. plans to buy its first South American plant through an agreement with Elice Industria e Comercio Ltda.
The Toronto firm announced Jan. 27 that it agreed to buy Elice's automotive parts facilities in Salto, Brazil, for undisclosed terms. It expects to finalize the deal March 30.
ABC said it will expand Elice's product line with interior and exterior components, air management and fuel systems, and other auto components. Elice currently blow molds reservoirs and makes electric pumps, sensors, switches and door locks.
ABC noted in a news release that Elice is strategically located for ABC to serve Latin American customers and to enhance its global presence. Officials declined to elaborate on the release.
ABC operates 19 blow molding facilities in North America, including Mexico, and has operations in Europe and Japan. In Plastics News' 1997 survey of North American blow molders, ABC Group Inc. reported blow molding sales of US$270 million for the year ended June 30. Total sales were US$305 million. ABC Group of Cos. is a division of ABC Group Inc.
Compass buying injection molder MOS
GARDENA, CALIF. — Compass Plastics & Technologies Inc. of Gardena has agreed to acquire MOS Plastics Inc. of San Jose, Calif. CPTI said Jan. 29 that it plans to purchase outstanding MOS stock and appoint MOS President Werner Schulz to the CPTI board of directors. Terms were not disclosed.
The deal combines MOS' engineering and tooling resources in making small complex parts with a CPTI subsidiary's strengths in large-part molding, decorating and assembly, according to Michael A. Gibbs, CPTI president and chief executive officer. MOS concentrates on the Silicon Valley market, while AB Plastics, the CPTI unit, focuses on Southern California and the Mexican state of Baja California Norte.
Injection molder MOS was formed in 1974, employs 150 and recorded 1997 sales of more than $18 million. MOS operates 38 injection molding presses in a 60,000-square-foot plant.
CPTI had profit of $2.1 million on sales of $44 million for the fiscal year ended Oct. 26. The company employs 270 in Gardena and 174 in Tijuana, Mexico, according to a Jan. 26 report to the Securities and Exchange Commission. An initial public offering of common stock in September netted $7.9 million. CPTI's AB Plastics unit is a contract manufacturer and assembler of custom injection molded components for computer and television monitors.
Closing of the MOS deal is scheduled by the end of February, subject to financing and other conditions.
Composites Institute mulls leaving SPI
WASHINGTON — The New York-based Composites Institute plans to ask its members whether they want to leave its parent organization, the Society of the Plastics Industry Inc., a high-ranking SPI official said.
Composites group officials told Washington-based SPI about the plan about a week after the two groups met Jan. 13, according to Harry Ussery, vice chairman of SPI. Ussery is also president of Beacon Plastics Inc. in Greenville, S.C.
CI Chairman Robert DeRoma declined to comment, referring calls to Ussery and SPI President Larry Thomas. DeRoma is senior vice president of Interplastic Corp. in St. Paul, Minn.
Ussery said he was encouraged that several CI leaders who also serve on the SPI board attended the SPI board meeting held Jan. 28-30, indicating a desire to continue talking.
SPI and CI had met to talk about the impact of an SPI restructuring on CI. The restructuring, which includes a significant dues cut, will leave CI with a deficit of about $300,000, Ussery said.
Ga. lawmakers oppose 10 cent bottle bill
ATLANTA — Georgia legislators have voted down a bottle bill in a Senate subcommittee, possibly preventing it from getting through the Legislature this session.
The 10 cent bottle bill was defeated 4-0 on Jan. 27 in the Environmental Protection subcommittee, after industry argued that the state recycles more than the national average and the bill would impose a tax on consumers.
The bill also faces long odds in the House, said Kevin Perry, a state manager with the Georgia Soft Drink Association.
The bill would have applied to all beverage containers of less than 1 gallon.