Celestica studies Omni Industries buy
TORONTO - Electronics contract manufacturer Celestica Inc. will review the fate of the injection molding operations it will inherit when it buys Omni Industries Ltd.
Celestica of Toronto mainly is interested in Omni's assembly services rather than its molding abilities and integrated circuit manufacturing, according to a Celestica spokeswoman. Omni, based in Singapore, has plants there and in Malaysia, China, Indonesia, Thailand, the United States and Mexico. It employs 9,000.
Omni makes products for personal computers and peripherals. It runs 28 manufacturing plants and seven sales offices. Its services range from design to mold building, molding, final assembly and distribution.
Celestica agreed to pay S$860 million (US$472 million) in shares and/or cash for all of Omni's shares. It expects to close the deal in the fourth quarter.
``The acquisition of Omni Industries significantly enhances Celestica's [electronics manufacturing services] presence in Asia,'' noted Celestica Chairman and Chief Executive Officer Eugene Polistuk in a news release.
Officials were unavailable to comment on Omni's molding operations. A Celestica spokeswoman said plastics molding is not strategic to Celestica. Unlike some of its competitors, the firm does not want to be vertically integrated in its manufacturing, she said.
PCL acquires BPI's HDPE bag assets
OAKVILLE, ONTARIO - PCL Packaging Corp. has entered high density polyethylene bags by acquiring assets from BPI Packaging Technologies Inc.
The assets include eight blown film lines and bag-making machinery in North Dighton, Mass. PCL bought the equipment at a June 15 auction and plans to keep it in North Dighton, according to Bill Swinimer, PCL chairman and chief executive officer. PCL mainly has produced low density polyethylene bags.
BPI made specialty bags with patented dispensing technology at North Dighton. PCL got the rights to BPI's technology and trademarks, Swinimer said in a June 18 telephone interview. The biggest customers for the bags are convenience stores and department stores.
The acquisition gives PCL, based in Oakville, its seventh plant in North America.
The North Dighton plant has more than 40 million pounds of annual film capacity and more than 30 million to make bags. BPI had been running the plant until the auction. Swinimer said PCL restarted the plant June 18 with 60 former BPI employees.
BPI had announced an investigation into its accounting and inventory systems last fall. At the time, it also said it was in default of credit obligations with LaSalle Business Credit Inc. and investment firm DGJ LLC.
Venture worker killed in tank explosion
MOUNT CLEMENS, MICH. - Police, fire and Michigan Occupational Safety and Health Administration officials are investigating a June 21 explosion at a Venture Industries Inc. facility near Detroit that killed one worker.
The man, who was not identified immediately, was emptying a hydraulic oil storage tank outside a Venture injection molding plant near Mount Clemens when the tank ruptured, blasting the top of it about 500 feet from its position.
No other employees were injured.
Operations were suspended temporarily and Venture brought in a crisis management team to spend several days with employees, said Chairman and Chief Executive Officer Larry Winget.
``The entire Venture family is very saddened by the loss of our friend, co-worker and valued employee,'' Winget said in a prepared statement.
The cause of the explosion still is under investigation, but preliminary reports indicate the man had hooked an air line to the tank to add pressure to it and speed up the flow out of it, said Capt. Dan McGeary of the Clinton Township Fire Department.
The tank was not designed to take the additional pressure and ruptured, he said.
Company officials did not authorize the maneuver and apparently were not aware it was being done, McGeary said.
The plant employs about 400 people in two shifts. Work resumed for the second shift following the incident, said Venture spokesman Scott Pickelhaupt. The employee had worked there since 1985.