The new owners of Worthington Custom Plastics Inc. plan to infuse a big chunk of change into the Salem, Ohio-based injection molder.
Key Equity Capital Corp., an affiliate of banking firm Key Corp. of Cleveland, announced it intends to spend $22 million on larger-tonnage presses, robots and upgraded manufacturing facilities.
The specific contents of the shopping list are not finalized yet.
``It takes a lot of effort to spend 22 million bucks,'' Clifford Croley, the incoming president and chief executive officer of Worthington Custom Plastics, said in a telephone interview.
Worthington Industries Inc. of Columbus announced May 27 the sale of its last plastics business, ending a nearly 20-year run with the material. The company put its plastics operations up for sale a year ago, explaining that it wanted to focus on its core metals businesses.
Worthington Custom Plastics joins a list of 14 plastics companies Key Equity has bought in recent years. That list includes Renaissance Plastics Co. of Hudson, Ohio, and Cardinal Packaging Inc. of Streetsboro, Ohio.
Croley, who also is a partner with Key Equity, said the new owners wanted to add an automotive molding business to Key's holdings, and Worthington Custom Plastics ``really fit the bill.''
While it is common practice for acquisition groups like Key Equity to mix and match businesses they hold, Croley said the new owners will keep Worthington Custom Plastics intact.
In March, Worthington Industries sold its three nonautomotive plastics plants to Morton Industrial Group Inc. In November, Worthington sold its 60 percent interest in London Industries to its joint venture partner, Nissen Chemitec Corp.
Plastics News recently ranked Worthington Custom Plastics as the 23rd largest injection molder in North America, with an estimated $200 million in sales.
Worthington's plastics plants are in Upper Sandusky, Mason and Salem, Ohio. The company also operates a design and technical center in Troy, Mich.