Film titan Alfred Teo has purchased a 50 percent stake in Poly Plastic Products Inc., an expansion-minded maker of custom bags, sheet and can liners in Delano, Pa.
The deal, announced Dec. 27, also includes a subsidiary that handles sales called Poly Dynamics Inc. of Hauppauge, N.Y.
Stephen Redlich will continue as president and chief executive officer at Poly Plastic Products. Redlich, who has been president of the film manufacturer since 1981, has increased his own equity position in the company with the recent deal. A few other outside investors also continue to hold shares.
Poly Plastic makes custom bags and sheeting from linear low density polyethylene, and trash can liners from high density PE.
Its 86,500-square-foot Pennsylvania factory produces more than 25 million pounds of film a year on 12 blown film lines. Redlich said the company expects to produce 27 million pounds of film in 2001, generating sales of about $18 million.
An expansion plan to add four blown film lines is scheduled for 2001, Redlich said in a Dec. 28 telephone interview. Poly Plastic will boost employment to 118 people, from the current 84.
Ultimately, the company plans to increase production to 40 million pounds a year and add product lines.
Poly Plastic's stable of machines includes Kiefel equipment to make HDPE film and, for LLDPE film, Davis-Standard and Battenfeld Gloucester blown film lines, according to Redlich.
Teo runs giant film manufacturer Sigma Plastics Group in Lyndhurst, N.J., but Redlich said Teo is buying into his company as an individual investor: "It's Mr. Teo personally that owns the stock."
Teo was on vacation and not available for comment last week, a Sigma spokeswoman said.
Poly Plastic serves the industrial, institutional and government markets. Redlich said the company quickly can ramp up production for the federal government when an emergency hits. For example, during Hurricane Andrew in 1991, cleanup crews used sheet made by Poly Plastic as flooring for emergency tents and to cover damaged roofs. During the Persian Gulf War, the firm's sheet protected helicopters from blowing sand.