Goshen following Honda to new terrain
BISHOPVILLE, S.C. — Following its customer's lead, the thermoplastics division of Goshen Rubber Cos. Inc. plans to open an injection molding plant in Bishopville.
The 27,500-square-foot plant, set to open in June, primarily will make custom parts for all-terrain vehicles. The plant's largest customer, Honda of America Manufacturing Inc., is moving its ATV operations from Marysville, Ohio, to a new plant in Timmonsville, S.C., near the Bishopville site.
``We're building the plant primarily to support the activities of [Honda] and, at the same time, consolidate our work with other customers in the area,'' said Bill Palmer, president of Goshen's Thermoplastics Division, based in Englewood, Ohio.
The plant will mold and assemble exterior trim parts, including fuel-tank covers and mud guards, for ATVs. Honda is molding the ATVs' plastic body panels at its new, $30 million plant, which is scheduled to start production later this year.
Goshen Rubber will invest $3 million in its plant and equipment. The facility will have six injection presses with clamping forces of 100-750 tons and will start with 50 employees.
When the plant opens, the thermoplastics division will operate six U.S. facilities with more than 80 injection presses. Goshen Rubber Cos. Inc. is based in Goshen, Ind.
Trace, Foamex call off merger plans
LINWOOD, PA. — Trace International Holdings Inc. and Foamex International Inc. have canceled merger plans, forcing Foamex to explore other alternatives.
Problems securing financing caused the deal to fall through, said a Foamex spokesman. Foamex makes flexible polyurethane and advanced polymer foam products under four business units.
New York-based Trace is the principal shareholder of Foamex and U.S. Auto Group. It also owns textiles maker CHF Industries Inc. and founded Trace Capital Management LLC.
Trace and Foamex reached a merger agreement in November, but a proposed financing source later told Trace officials it could not provide the funding. An alternate source could not be found.
The Foamex board will continue to explore alternatives with its advisers, said Chairman Andrea Farace.
Marshall S. Cogan, Trace chairman and chief executive officer, said he believes a ``fresh review of all our strategic options is the best next step for Foamex.''
Ellis & Everard buys Irish distributor
BRADFORD, ENGLAND — In spite of tough European trading conditions, Ellis & Everard plc is expanding its distribution network by buying Dublin, Ireland, resin supplier Izan Industries Ltd.
Izan is a leading, regional commodity resins and polyester distributor, with about £3 million ($4.9 million) in annual sales.
Ellis & Everard will pay up to $2.2 million for the business.
Izan business development manager Kevin Sheridan and sales manager Paul O'Looney will join Ellis & Everard management. The pair had been small shareholders of Izan.
Izan has been absorbed by Distrupol, the polymers division of Ellis & Everard Ireland.
For the six-month period ended Oct. 31, Ellis & Everard of Bradford reported pretax profit of £17 million ($28 million), up 3 percent from the same period a year ago. Sales were up 8 percent to £392 million ($641 million).
Suiza sells Ohio plant to rival Plastipak
DALLAS — Suiza Packaging Group plans to continue operations at its Lima, Ohio, blow molding plant even though a competitor's owners bought the facility in December.
Plastipak Packaging Inc. bought the Lima plant for about $3.4 million, according to documents filed in Allen County, Ohio. William C. Young and William P. Young acquired it from the Arredondo family of Greenwich, Conn.
Suiza Packaging President Bill Estes said Suiza has about 11/2 years left on the Lima lease and it plans to occupy the plant for that time. A current contract to supply large containers to Procter & Gamble Co. runs out in June, but Estes said it is possible that P&G could extend the contract. Plastipak won a bid in 1997 to supply the 50- and 90-ounce containers to P&G, but P&G extended the contract to Suiza because of various delays.
Estes said by telephone from Suiza's Dallas office that Plastipak did not acquire equipment in Lima. Suiza may relocate some Lima equipment to other Suiza plants beginning this summer, he added. Officials with Plymouth, Mich.-based Plastipak could not be reached for comment.