New owner to expand Canyon Plastics
VALENCIA, CALIF. —Unistar Enterprises Inc. has acquired Canyon Plastics for an undisclosed amount and expects to add three 550-ton vertical injection molding machines by January.
``We are planning to expand and thinking about ISO 9000,'' Kirit Gajera said in a telephone interview.
Gajera is president and owner of Unistar, a holding company he incorporated for the acquisition. Unistar will retain the Canyon Plastics market identity and location in Valencia.
Annette Summers sold the business and 13,000-square-foot facility and agreed to serve as a consultant for three months. She continued Canyon Plastics after the 1994 death of her husband, James Summers, who founded the operation in 1983.
Canyon Plastics employs 27, operates six Toyo machines with clamping forces of 50-330 tons and three Nissei presses with 75-220 tons. The firm, which mostly molds parts for the medical, electronics and agricultural irrigation markets, withheld sales figures.
Gajera, an engineer by training, had operated a Texas firm that he continues to own as a silent partner.
Mentor Group of La Palma, Calif., a mergers-and-acquisitions firm, brokered the Nov. 20 transaction.
Wellman to close N.J. recycling plant
BRIDGEPORT, N.J. — Wellman Inc. is closing its Bridgeport plant and relocating production of its EcoClear recycled-content PET resin and its Day Products subsidiary to the company's Johnsonville, S.C., plant.
The leased plant is to close before the end of 1999's first quarter. Almost all 45 employees will be laid off. Necessary equipment will be moved to Johnsonville while the rest will be sold or scrapped.
``It's a small plant, and Johnsonville is larger and more efficient,'' communications director Judith Langan said in a telephone interview. ``It makes good economic sense.''
The Johnsonville plant currently recycles PET into fiber.
Wellman, based in Shrewsbury, N.J., claims to be the world's largest plastics recycler. It also manufactures virgin PET resin.
World Class buys Portco film business
YONKERS, N.Y. — World Class Film Corp. of Yonkers purchased the blown film extrusion operations of Portco Packaging for an undisclosed amount Dec. 1, and plans to expand them.
``We're heavily focused on the West Coast produce markets and we needed extra capacity,'' Ron Shemesh, World Class director, said in a Dec. 4 telephone interview.
Portco, a Vancouver, Wash.-based supplier of paper and plastic flexible packaging, operated four blown film lines and employed 15 in that division. World Class films plans to invest $4 million to purchase two new coextrusion lines for the Vancouver facility. The coextruded polyethylene and engineered resin barrier films will serve the produce and modified-atmosphere packaging markets.
With the sale of its blown film lines, Portco plans to focus on its paper, printing and converting operations.
World Class reported film sales of $49 million last year, placing it at No. 72 in Plastics News' 1998 North American film and sheet ranking. It employs 215 at four plants in the United States.
Partners hope to charge up Mexico sales
MILWAUKEE — Three of the world's largest makers of automotive batteries have formed a joint venture to help penetrate the Mexican and South American markets.
The globe-dotting companies — Johnson Controls Inc. of Milwaukee, Varta AG of Hanover, Germany, and Grupo Imsa SA of Monterrey, Mexico — plan to operate 10 manufacturing plants that can make a total of more than 23 million batteries a year, said Adrian Fernandez, Imsa corporate finance manager.
Imsa will have a 50 percent stake in each plant. Together, those facilities recorded about $450 million in annual sales last year, Fernandez said. Johnson Controls, which contributed one Mexican plant to the venture, also made a $69 million cash payment to Imsa as part of the agreement, he added.
The companies will serve automakers and make aftermarket batteries. The casings at each plant are injection molded from polypropylene.
The venture also includes seven Imsa plants, operated by its Enermex subsidiary, in Mexico, Brazil, Argentina and Venezuela and two plants operated jointly in Brazil and Argentina by Johnson Controls and Varta.