Amcor acquires CPI's Pet Pak business
MISSISSAUGA, ONTARIO - Consumers Packaging Inc. has sold its PET containers business to Amcor Twinpak Americas Inc.
The deal launches Amcor into liquor packaging, the main focus of Consumers' former Pet Pak Containers business. Pet Pak has annual sales exceeding C$20 million (US$12.4 million) and operates one production plant in Mississauga.
Pet Pak specializes in short runs of custom-made containers. It complements Amcor's main business of high-volume production of bottles for water, soft drinks and juice, said Garry Davis, president and chief executive officer of Amcor PET Americas.
CPI sold Pet Pak as part of a companywide sale of assets to pay off creditors. It earlier agreed to sell its much larger glass container operations to Owens-Illinois Inc. of Toledo, Ohio.
Davis said Pet Pak's research and development capabilities also will help Amcor expand into other specialty market segments. Amcor Twinpak is based in Montreal.
Davis said Amcor will run Pet Pak, with nine blow molding lines, as a separate company. He did not disclose terms of the purchase, which was completed late last month.
Kelch moving Wis. molding operation
CEDARBURG, WIS. - Kelch Corp. will close its injection molding operation in Cedarburg and move it to a new facility it built in Menomonee Falls, Wis., in September.
Kelch plans to boost its abilities in molding nonautomotive fuel systems and components by locating production in one facility. It will complete the move by the second quarter. About 120 are employed at Cedarburg, 15 miles from Menomonee Falls.
The company built the 150,000-square-foot Menomonee facility to accommodate anticipated growth in its plastic fuel-tank business. The building replaced a smaller plant in Mequon, Wis.
The relocation reflects Kelch's drive to evolve from a supplier of fuel tanks, caps and gauges to a producer of complete fuel systems, noted Richard Bemis, president and chief executive officer of Bemis Manufacturing Co., owner of Milwaukee-based Kelch. Bemis Manufacturing is based in Sheboygan Falls, Wis.
C&A owner still scouting for acquisitions
DEARBORN, MICH. - Investment group Heartland Industrial Partners spent the past year and hundreds of millions of dollars creating and re-creating firms for the auto industry, including the expanded Collins & Aikman Corp. And it has not finished yet.
Heartland founder David Stockman noted Jan. 15 at the Automotive News World Congress in Dearborn that suppliers must have a strong, unique strategy to survive but also need size. An optimal operation must have $5 billion to $10 billion in annual sales to achieve the economies of scale needed in the industry.
Heartland holding C&A of Troy, Mich., which bought Textron Inc.'s automotive trim division late last year, now has about $4 billion in sales. Its Metaldyne Corp. holding, in Plymouth, Mich., has $2.6 billion in sales. The firms are focused on consolidating their businesses but are on the lookout for other opportunities.
``To reach the $5 billion to $10 billion powerhouses that have those unique [products], there is going to have to be some fill-in acquisitions, some European acquisitions,'' Stockman said.
Newcor downsizes to ease financial strain
BLOOMFIELD HILLS, MICH. - Troubled molder Newcor Inc. continues to shuffle its business structure by closing an operation in Troy, Mich., to consolidate production and cut employees.
Newcor, a Bloomfield Hills-based firm that molds plastics and rubber for the automotive industry, announced Jan. 14 it will close its Troy technologies division and move production to its machine tool and gear division in Corunna, Mich. The shift will cut about 100 workers.
``Although we regret the displacement of our employees, the decline in Newcor's sales in the automotive sector requires us to constantly look at our capacity,'' James J. Connor, president and co-chief executive officer said in a written statement. ``The cost savings that will be realized from this consolidation will strengthen Newcor for the future.''
Newcor posted $41.6 million in sales in the third quarter, ended Sept. 30, vs. $55 million for the year earlier. It posted a net loss of $33.9 million for the period, vs. a loss of $792,000 a year earlier.
Newcor executives also are in negotiations with creditors and lenders to restructure debt, to allow the company to continue. In September, the businesses failed to make a $6.1 million interest payment on a loan.