Slow sales force Security into bankruptcy
MIAMI LAKES, FLA. - Security Plastics Inc. has filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
The Miami Lakes custom injection molder filed a voluntary petition Aug. 7 in U.S. Bankruptcy Court in Miami. Officials declined comment, and the firm's lawyer, Robert Schatzman of Miami, could not be reached before deadline.
Security's North American operations include 173 presses in four plants in Miami Lakes; McAllen, Texas; Rio Grande, Puerto Rico; and Chihuahua, Mexico. It specializes in small parts made with its Hetero-Cavity molding technology, which relies on small, quick-change tools in standard mold bases. It employed about 890 and had molding sales of $70 million last year, down from $72 million in 1999.
Security is owned by President Norman Cohan.
Eastman Chemical dubs unit Voridian Co.
KINGSPORT, TENN. - There's a new name for the big PET sheriff in town: Voridian Co.
That's the name that Eastman Chemical Co.'s PET, polyethylene and acetate fibers businesses will operate under when they split from Eastman's specialty chemicals units later this year. Voridian, which will be the world's largest PET maker, will have annual sales of more than $2 billion. Allan Rothwell will be chief executive officer.
The other half of Eastman, to be renamed Eastman Co., will produce chemicals as well as specialty plastics such as copolyester.
Both Voridian and Eastman Co. will be publicly held and maintain headquarters in Kingsport.
Two Alabama film converters up for sale
ALBERTVILLE, ALA. - Two Albertville bag-making companies, Ampac Inc. and Printmasters Inc., are now up for sale after both firms filed for Chapter 11 bankruptcy protection in April.
Allen Barnes, president of both companies, announced Aug. 7 that he has retained two investment banks to coordinate the sale.
Printmasters generated sales of $15.5 million from flat-pack and wicketed bags and pouches for consumer goods such as lawn and garden products and food. The company runs six- and eight-color printing lines.
Ampac makes printed and unprinted wicketed bags for poultry, produce and other consumer goods markets. Ampac reported sales of $13.3 million for the fiscal year ended March 31.
According to the Marshall County Industrial Directory in Alabama, the two companies employ about 300.
O-B eyes tax breaks for choice of location
IOWA CITY, IOWA - Property tax and utility breaks may lure Owens-Brockway Plastic Products Inc. to build a plant in Iowa City.
The proposed $11.7 million container plant would employ about 35 making containers for a local Procter & Gamble Co. personal-care product plant that has been in the community since the 1950s, according to Joe Raso of the Iowa City Area Development Group.
Raso said O-B's parent company, Toledo, Ohio-based Owens-Illinois Inc., has not made a final decision to move ahead with the project. The city recently approved a five-year, $522,300 tax abatement for the company. Raso said construction on the 64,000-square-foot plant could begin next month. O-I officials did not return telephone calls.
Sterling Group forms Exo-Tech Packaging
SPARTANBURG, S.C. - Private equity firm Sterling Group LP has formed a new company to acquire International Paper Co.'s flexible packaging business.
Exo-Tech Packaging Inc. in Spartanburg completed the deal Aug. 7. Terms were not disclosed.
The deal includes nine plants that generate annual sales of more than $400 million, according to Sterling. That includes $89 million in plastics-related sales. The company's plastics operations are in Spartanburg and Tomah, Wis.
The business makes multiwall paper and plastic bags, including bags for pet food, charcoal and cement.