Plastics Group expanded its blow and rotational molding businesses by acquiring Wedco Moulded Products Feb. 21 from Union Carbide Corp.
Wedco does custom molding and has its own line of proprietary fuel containers and septic tanks. The Boucherville, Quebec, outfit near Montreal has sales of about C$22 million (US$15.5 million), said Plastics Group Chief Executive Officer Brian Beth. Chicago-based Plastics Group also comprises blow molder Borse Industries LP of Willowbrook, Ill., and Pawnee Rotational Molding Co. of Maple Plain, Minn.
Wedco's proprietary business accounts for about 60 percent of its sales and fuel containers are its major proprietary product line, said Lars Goodman, Wedco general manager. Plastics Group will expand the proprietary product lineup and boost Wedco products' U.S. sales, predicted Larry Gies, a partner in Madison Capital Partners, the Chicago-based owner of Plastics Group.
Wedco runs 10 blow molding machines with shot sizes as large as 35 pounds in Boucherville, Beth said in a telephone interview. It also operates two Ferry four-arm rotomolders and a large rock-and-roll rotomolder for septic tanks. It employs about 175.
Union Carbide sold Wedco, its last plastics processing operation in Canada, because ``we feel it is a better strategic fit for the buyer than for [Carbide],'' said Alex Solomon, Carbide's manager for corporate ventures. In 1994 Carbide sold its last Canadian film operations to Uniplast Industries Inc. of Orillia, Ontario, and Sigma Plastics Group of Lyndhurst, N.J.
Carbide acquired a half-interest in Wedco in 1981 and in 1986 bought the rest of the company.
Gies said Wedco fits his firm's focus to offer complete engineered plastics services. It now wants to enter thermoforming.
Madison bought Plastron Industries Corp. in September and is running it separately, Gies said. The Bensonville, Ill., operation injection molds bobbins for motors and transformers and has about US$20 million in sales.