CLEVELAND — Ferro Corp.'s half-billion-dollar acquisition of several businesses from Cleveland-based OM Group isn't expected to have much of an effect on the firm's plastics compounding operation.
Ferro, also based in Cleveland, will pay $540 million to take over OM's electronic materials, pigments, glass and ceramics segments. Of those, only the pigments unit has any sales into the plastics market, according to an April 24 news release.
Ferro ranks as one of the largest polypropylene compounders in the United States. Ferro's plastics sales totaled $255.8 million in 2000 — an increase of less than 1 percent over 1999 — and accounted for about 18 percent of Ferro's 2000 sales total. Plastics profit was down considerably in 2000, however, falling more than 40 percent to $14.7 million.
After the OM deal, plastics' share of Ferro sales could drop as low as 13 percent, based on 2000 sales figures.