Spartech Corp. has landed another outsourcing agreement with a company that is shedding a plastics operation to focus on its core business.
Spartech announced July 31 it will supply bathware producer Maax Inc. of Ste. Marie de Beauce, Quebec. Spartech will buy three extrusion lines from Maax's Lachine, Quebec, plant and become its supplier of ABS and polystyrene sheet used in shower surrounds and similar bath products, according to David Pocost, Spartech's executive vice president of extruded sheet. The supply agreement extends five years.
Maax had been making ABS and PS sheet for several years to meet some of its captive needs. Pocost said his firm will move the former Maax equipment, bought for about US$1 million, to its Granby, Quebec, operation. Granby will be Spartech's main supply point for Maax's ABS and PS sheet needs but other Spartech plants also will supply Maax, which has bathware production across North America. The new Maax business represents about 7 million pounds of sheet per year, Bradley Buechler, Spartech chairman, president and chief executive officer, said in a news release.
The deal does not include acrylic sheet that Maax uses to make fiberglass-backed bathware.
Spartech of Clayton, Mo., has made outsourcing deals a strategic expansion ploy.
``We have recently established a cross-functional `outsourcing team' that will be targeting businesses who currently produce their own plastics materials, but where such operations are not core to their business models,'' Buechler noted in a news release. Captive sheet extrusion, compounding, profile extrusion and molded products are operations the new team hopes to bring to Spartech.
Other recent outsourcing arrangements include one for PS sheet with a Whirlpool Corp. subsidiary in Mexico and a deal to mold wheels in Tupelo, Miss., for lawn equipment manufacturer MTD Products Inc.