Reunion Industries Inc. has no plan to sell its plastics business, ORC Plastics, but it will shut the business's headquarters in Charlotte, N.C.
Earlier, the firm said in a filing with the Securities and Exchange Commission that it planned to close its Siler City, N.C., thermoplastic injection molding plant but a pickup in performance means the company will keep it open this year, according to Reunion President and Chief Operating Officer Kimball Bradley. The company might relocate the Siler City operation to a smaller, more efficient facility in North Carolina next year.
Pittsburgh-based Reunion will take a $5.3 million charge against earnings for the fourth quarter of 2001 to cover the headquarters closure and other changes. The firm molds and assembles thermoplastic and thermoset parts for more than 500 customers, it said in the SEC filing.
Reunion is in the process of selling two of its businesses but it is not actively shopping ORC, said Bradley.
Reunion delayed filing its 2001 annual report because it has been negotiating sales transactions. Bradley said the sale of two businesses ``is more than enough to de-leverage the company.'' The company lost $2.7 million in the third quarter and missed an interest payment on senior notes in November.
The firm's divisions are industrial systems firm Alliance Machine, pressure vessel producer CP Industries, hydraulic and pneumatic cylinder systems maker Hanna Cylinders, Kingway Material Handling, leaf spring producer Steelcraft and ORC Plastics. Reunion said in its SEC filing that it will consolidate pressure vessel operations and cylinder operations, liquidate Alliance Machine and dispose of Kingway.
ORC's other plastics molding plants are in Oneida, N.Y., and Lafayette, Ind.