Tredegar seeking Exxon film business
RICHMOND, VA. — Tredegar Industries might buy Exxon Chemical Co.'s plastic film business, Tredegar announced Feb. 3.
The two firms are in negotiations and did not reveal a potential purchase price or closing date. Exxon last fall revealed its plan to sell its polyethylene films business.
Exxon's films are used in diapers, feminine hygiene products, medical and other packaging. Tredegar sells its films to those and industrial and agricultural markets. Medical markets would be new to Tredegar, said spokesman Edward Cunningham in a telephone interview from Tredegar's Richmond headquarters.
Exxon spokeswoman Janis Grant confirmed her firm is negotiating with Tredegar but she would not comment further.
Exxon's film plants are in Pottsville, Pa., and Lake Zurich, Ill. Plastics News estimates their sales to be nearly $125 million. Tredegar Film Products extrudes film at six plants in the United States, in the Netherlands, Brazil, Argentina and China. It plans to open a new plant in Budapest, Hungary, in the third quarter, rather than in Poland as it originally planned in 1997. Tredegar Film Products had sales of $287 million last year.
Managers buy Hanna's Puerto Rico unit
CLEVELAND — M.A. Hanna Co. on Feb. 4 announced the sale of its plastic colorant and additive manufacturing plant in Carolina, Puerto Rico, to New Million Corp., whose principals include former Hanna division manager Jose Munoz and former administrative manager Luis Jimenez.
The deal includes a license for some Hanna technology, trademarks and custom product formulations in Puerto Rico. The new company also will be a nonexclusive sales agency for Hanna products manufactured outside of Puerto Rico.
Hanna originally planned to close the plant, along with four other North American plants, as part of a profit-improvement plan. Since announcing the closings in August, Hanna shut down the other plants in Milford, N.H.; Eagan, Minn.; North Kansas City, Mo.; and Vancouver, Wash.
Munoz, New Million's president, said in a telephone interview that the decision to buy the facility was the best move for everyone involved, especially Hanna's Puerto Rican customers. New Million will serve customers in Puerto Rico and the Caribbean that Hanna had served since 1972. Munoz said 10 of the 14 Hanna employees at the plant will work for the new firm.
L.A. lambastes Miller's PET beer bottle
LOS ANGELES — The Los Angeles City Council was sharply critical of the Miller Brewing Co.'s new PET beer bottle in a Feb. 2 vote, saying the amber color, aluminum cap, oxygen barrier layer and metalized label will hurt plastics recycling.
The council voted 11-0 to chastise Miller for introducing the bottle before resolving recyclability issues, and it said it would present the Milwaukee-based brewer with a bill for any additional costs to Los Angeles's recycling program.
``The plastics market is not as high as the market for aluminum and glass, and plastics are more easily thrown out on the road,'' said Miki Tennant, spokeswoman for Councilwoman Ruth Galanter, who sponsored the resolution.
Miller spokesman Scott Busson said no one, including the City Council and recycling groups that have been critical, know what the impact will be because testing is ongoing.
Miller is testing the bottle with recyclers, and is working with groups like the Association of Postconsumer Plastic Recyclers and the National Association for PET Container Resources, he said.
``If we move forward with the plastic bottle, we want it to meet all reasonable recycling standards,'' he said.
U.K.'s Kenwood sells molding operations
HAVANT, ENGLAND — Tumbling sales and profit have forced household equipment maker Kenwood Appliances plc to jettison its plastic molding operations.
Kenwood last week agreed to sell its plastic molding capacity at Havant to Hong Kong-based Allan International Holdings Ltd. for £2.2 million ($3.6 million) in cash.
``This transaction is another important step in transforming Kenwood from a vertically integrated manufacturing operation to an agile, brand-led company,'' Colin Gordon, chief executive officer of Kenwood, said.
In addition, the two firms signed a four-year agreement for Allan to supply some products to Kenwood.