Multilayer sheet extruder Matra Plast Industries Inc. has expanded to the West Coast by acquiring a controlling interest in Kiva Container Corp. of Fullerton, Calif.
New York-based Matra will install two sheet extrusion lines at the purchased operation and change its name to KMP Plastics, Matra said in a news release. Kiva has been a fabricator of packaging for various industries and signage using purchased sheet.
Matra President Herman Sterling said his firm wanted to be active in Western markets, but they have been difficult to serve from his firm's Eastern plants because of transportation costs. Sterling did not disclose terms of the purchase, but he said the July 1 deal and KMP's expansion will total about $12 million over 20 months.
Sterling said in a telephone interview that KMP will have about 12 million pounds of sheet capacity when the extruders are installed in the fourth quarter. Matra personnel and undisclosed subcontractors will build the extrusion lines. Sterling said they will make sheet as wide as 100 inches from polypropylene, polycarbonate and ABS for electronic, agricultural, construction and sign markets. Norm England, a founder and part owner of Kiva, will continue with KMP as its president.
Kiva's owners agreed to the Matra deal because it will lead to vertical integration, England said, adding that the Fullerton area lacks corrugated sheet manufacturers. The Fullerton operation has 57,000 square feet of space and 65 employees.
Matra's other manufacturing facilities are in Berthierville, Quebec, where it extrudes a variety of sheet, and in Long Sault, Ontario. Sterling said the Long Sault plant is running at capacity making PC sheet, and Matra plans to expand the three-line operation next year. Matra specializes in double- and triple-wall sheet.
Sterling, co-owner of Matra, would not reveal sales.