Travis Street finds ICO sales disappointing
HOUSTON — Travis Street Partners LLC, the Houston investment group that has been trying to take over compounder ICO Inc., said it is reconsidering its bid after ICO released disappointing financial results Feb. 9.
ICO's sales for the quarter ended Dec. 31 were down almost 5 percent from the previous quarter, while its pretax profit was down about 25 percent.
Travis Street manager Tim Gollin said his firm is "baffled" as to why ICO management described its results as "strongly improved" in a Feb. 9 news release.
"We expected, at a minimum, that this quarter would be flat compared to last quarter," Gollin said.
ICO posted sales of $325.3 million in its 2000 fiscal year, which ended Sept. 30. The company owns compounders Wedco Inc. and Bayshore Industrial Inc.
Travis Street had offered $2.85 per share for ICO, which was trading Feb. 15 at $2.25. Gollin declined to say how Travis Street might restructure its offer.
ICO officials could not be reached for comment.
GE, OSHA still seeking cause of gas leak
BURKVILLE, ALA. — Officials with GE Plastics and the Occupational Safety and Health Administration still are investigating the cause of a toxic-gas leak that stopped polycarbonate production for three days at the company's Burkville site.
A small amount of phosgene gas — a PC feedstock — was released about 8:30 p.m. Jan. 31 and caused a partial evacuation of the site. No one was injured and none of the gas escaped the site, which employs about 400, said company spokesman Bob Hess.
Production resumed Feb. 3. The three-day outage is not expected to affect shipments to customers or an ongoing expansion in Burkville, which is to be completed in 2002. The expansion will give the plant estimated capacity of 550 million pounds, matching the size of GE's PC facility in Mount Vernon, Ind.
OSHA's Mobile, Ala., office is handling the investigation. OSHA spokeswoman Lorette Dempsey declined to comment on the investigation or when it would be wrapped up but said OSHA regulations require their investigations to be completed within six months.
Santa leaves Krauss-Maffei for Japan firm
SCHAUMBURG, ILL. — Michael Santa has left Krauss-Maffei Corp., where he was executive vice president, and now is selling another brand of injection presses, Sodick machines, for a Japanese machine tool distributor.
Santa is now the general manager of the newly formed plastics division at Yamazen Inc. in Schaumburg. He will sell injection presses from the manufacturer, Sodick Plustech Co. Ltd. of Yokohama, Japan.
Yamazen is diversifying into plastics machinery from its base in metal-cutting machines.
Meanwhile, at Krauss-Maffei, Paul Caprio has been promoted to executive vice president from sales and marketing manager. Caprio joined Krauss-Maffei in Florence, Ky., in 1994.
Krauss-Maffei Corp. is the North American unit of Krauss-Maffei Kunststofftechnik GmbH, based in Munich, Germany.
Santa joined Krauss-Maffei as regional manager in 1993. The following year he was named executive vice president. Under his leadership, Krauss-Maffei's sales grew from $11 million to $70 million.
Before his career at Krauss-Maffei, Santa started the plastics division of Machinery Systems Inc., also in Schaumburg. That company sold used equipment and new Niigata, Shinwa Seiki and Ube injection molding machines, he said.
Intertape buy boosts FIBC production
MONTREAL — Intertape Polymer Group Inc. expanded in flexible intermediate bulk containers by acquiring Professional Manufacturing Group of Piedras Negras, Mexico, for undisclosed terms.
In the deal, Intertape of Montreal acquired a 65,000-square-foot facility 150 miles southwest of San Antonio. Melbourne Yull, Intertape chairman and chief executive officer, said in a news release that the purchase will allow the firm to increase its FIBC production from lower-cost sources. Intertape also has a manufacturing partnership in Matamoros, Mexico, and a manufacturing contractor in San Luis Potosi, Mexico.
Intertape is closing its Augusta, Ga., FIBC plant.
FIBCs typically are made of woven polypropylene tapes and can require labor-intensive sewing operations. They usually are for transporting dry, free-flowing products in amounts weighing less than a ton.
Intertape also has debuted two new FIBCs. Pallet-Free has reusable forklift bottom channels. Nova-Stat is a static-dissipative FIBC for products that could present an explosion risk.