Alloy Polymers buying compounding plant
RICHMOND, VA. - Alloy Polymers Inc. of Richmond is buying a compounding plant with 110 million pounds of annual capacity in Gahanna, Ohio, from Basell NV.
The purchase price was not disclosed. Alloy officials said the firm will retain the plant's 70 employees.
Basell, a leading polypropylene maker based in Hoofddorp, the Netherlands, was limited in its ability to expand in Gahanna, and instead will expand a similar compounding plant in Jackson, Tenn., said Basell spokesman Nick Nagurny. The firm will transfer a 35 million-pound-capacity twin-screw extruder from a plant in Wilton, England, to the 14-acre Jackson plant when the Wilton site closes later this year.
Alloy, a toll compounder founded by owner Subhash Pahuja in 1982, employs 100 and operates 100 million pounds of capacity on 13 twin-screw extrusion lines in Richmond. The firm focuses on engineering resins, such as nylon, polybutylene terephthalate and polycarbonate. The Gahanna site mostly compounded PP, which is only a small portion of Alloy's business. Alloy now will be able to compound some of its engineering lineup in Gahanna, according to Alloy market development manager James Kochanksi.
Markets for Alloy's products include automotive, aerospace, rigid and flexible food packaging, specialty film and textile/fiber.
As part of the sale, Alloy will provide toll compounding services to Basell at the Gahanna site for four years. Basell expects to consume about half of the Gahanna plant's output in that time period.
``When looking at our customers' current and future needs, we believe Gahanna is a perfect fit for us,'' Pahuja said in a news release.
Growing Badger Color moving to larger plant
MUSKEGO, WIS. - Although many compounders are working to recover from disappointing 2001 results, the folks at Badger Color Concentrates in Muskego are singing a different tune.
Badger, a color compounder founded in 1998 by Clariant Masterbatches veterans Michael Fatta, Michael Madey and Ed Bieber, will move into a new, 50,000-square-foot plant in nearby Mukwonago this fall. The $2.5 million site, about 20 miles west of Milwaukeee, is more than three times larger than the current facility.
The new site will be adjacent to Seaquist Closures Co., an injection molder that accounts for about 25 percent of Badger's sales.
Badger's sales doubled in 2001, hitting the $3.5 million mark. Sales for 2002 are expected to be between $6 million and $7 million, according to Fatta.
Most of the expansion cost will be financed by a $2.3 million industrial revenue bond from the state. The bond is essentially a low-interest loan that Badger will repay over 10 years, Fatta said.
Badger will move its mix of six single- and twin-screw lines to the new site, and plans to install two new twin-screw lines by year's end. The firm will spend about $500,000 on the new equipment.
In addition to boosting Badger's immediate job count from 32 to 50, Fatta expects the move to create 30 more positions by the end of 2004.
Badger mostly produces lots of 100-200 pounds, with the bulk of its products based on polyolefins and PVC. It can fill most orders within five days.
``We're in a pretty heavy injection molding and sheet extruder area,'' Fatta said. ``There's no one else up here.''
Accel to establish color center in Ohio
NAPERVILLE, ILL. - Color compounder Accel Corp. of Naperville is focusing on dry color work by establishing a development center in Avon, Ohio.
In the last six months of 2001, Accel added rotational molding ovens and pulverizers in Avon, although officials declined to say how much the company has spent on the project. Technical specialist Dave Phillips, who has more than a decade of experience in the field, will lead the dry color initiative.
Dry color accounted for about 10 percent of Accel's sales in 2001, but the market is growing, according to President David Knowles.
``It's not a huge market, but it's one we're pretty good at and it's one that's significant in Ohio,'' he said. ``We're seeing opportunities in toys, housewares and sports and recreational equipment.''
Markets targeted for dry color products include rotomolding, compression extrusion and caulk. Knowles added that Cleveland-based compounder PolyOne Corp.'s decision to close its plant in Broadview Heights, Ohio - which had produced dry color and other color compounds - could create opportunities for competitors such as Accel.
Accel, founded in 1998 by Dwight Morgan, now operates 15 lines and employs 60 at sites in Naperville and Avon. The firm posted sales of about $10 million in 2001 after reaching $6 million the previous year.
The company is looking to expand via acquisition or by opening a new site. Knowles said Accel expects to have a site in the Southeast by early 2003 and is looking at the Northeast and regions west of the Mississippi River as well. The firm snagged Phoenix Color and Compounding Inc. of Sandusky, Ohio, in late 2000 and moved the Phoenix assets to Avon.
Clariant acquires 3 lines from Action
EASTON, MD. - Color compounder Clariant Masterbatches -has acquired the in-house compounding unit of one of its Canadian customers.
Easton-based Clariant purchased three single-screw extrusion lines for an undisclosed price from Action Colour Concentrates of Oakville, Ontario. Action produced color concentrates for Mac Closures Inc., a Waterloo, Quebec-based injection molder of caps and closures. Action was located inside Mac's Oakville plant.
Clariant will transfer the Action machines to a plant it is building in nearby Etobicoke, Ontario, that will open in midyear. Two of Action's six employees will transfer there as well.
Action sent about 75 percent of its output to Mac, and sold the rest to outside accounts. Action's outside customers now will be served by Clariant's sites in Ontario and Lachine, Quebec.
``There's some possibility of growth into other markets,'' said Yvon Garneau, sales and marketing manager for Clariant Canada. ``But this is more about solidifying our relationship with Mac.''
Action's lines have an annual capacity of about 500,000 pounds. Its annual sales were less than $1 million.
The Canadian market represents about 14 percent of Clariant's total North American sales, estimated at $240 million. The firm ranks as one of the three largest color compounders in North America, along with PolyOne Corp. of Cleveland and Ampacet Corp. of Tarrytown, N.Y.