Black River Plastics now has the floor space it needs to grow, with a winning bid to buy the shuttered Key Plastics LLC plant near its own Port Huron, Mich., headquarters.
The injection molder will pay $901,000 for the 50,230-square-foot plant two blocks from its existing operation. The building has the necessary infrastructure for plastics processing, including silos, a cooling system, conveying equipment and overhead cranes, said Steven Fulghum, vice president of corporate development.
``We could hit the ground running on this one,'' he said.
There were multiple bidders involved in the Nov. 21 auction conducted by Sheldon Good & Co. International LLC of Chicago. Officials would not say exactly how many companies actively sought the building, however. It listed a minimum bid price of $850,000.
Key closed its Port Huron plant earlier this year as part of turnaround efforts. The company emerged from bankruptcy under new ownership in 2001.
Black River has been growing since Faye Caballero bought it in 2000, adding more than 35 jobs and four injection presses, and forming a blow molding joint venture, Twin Rivers Technologies, with Flambeau Corp.
``It's so tight here, we are considering moving machines we already have over [to the new plant],'' Fulghum said.
The firm also may buy additional presses for the new plant, but the final decision on any capital outlay will depend on the contracts it receives from automakers and other suppliers, he said.
