CPI Plastics acquires Mid-America Bag
MISSISSAUGA, ONTARIO - CPI Plastics Group Ltd. expanded its films business with the acquisition of Mid-America Bag LLC of North Chicago, Ill.
Mid-America had unaudited sales of US$12.9 million for the year ended Oct. 31 and unaudited pretax profit of US$1.7 million, CPI said. Mississauga-based CPI paid US$6.1 million for Mid-America in a deal finalized Nov. 25. The purchase price includes US$4.8 million in cash and 263,157 CPI common shares. Mid-America Bag makes a variety of high and low density polyethylene bags under the Mid-America Bag and Ultimate Liner brands. Its net tangible assets were valued at US$2.25 million on Oct. 31.
CPI, mainly a custom and proprietary profile extruder, entered film in 1999 when it bought Extrufix Inc. of Richmond Hill, Ontario. Extrufix's seven extrusion lines launched CPI into consumer bags and related Rack Sack kitchen trash-bag holders. Peter Clark, CPI chairman and chief executive officer, said Mid-America has excess production capacity and a solid customer base that will help it expand in films in Canada and the United States.
Alcoa closing Calif. thermoforming plant
LOMPOC, CALIF. - Alcoa Flexible Packaging of Richmond, Va., plans to close a Lompoc thermoforming plant by March 31. Job-search assistance and severance pay will be offered to the facility's 44 hourly and eight salaried employees.
Most of the plant's electronics customers have moved production to Asia. ``As a result, this facility is no longer able to maintain a strong enough base of business,'' said Roger Kurinsky, general manager of technical packaging for Alcoa Flexible Packaging.
Alcoa expects to continue Lompoc plastics packaging production through February and transition work to other Alcoa sites.
Alcoa Flexible Packaging obtained sites in Lompoc; Wheaton, Ill.; Cumberland, R.I.; and Sungai Petani, Malaysia, in its July acquisition of Ivex Packaging Corp. of Lincolnshire, Ill. Pactuco Inc. opened the Lompoc facility in 1992 and sold the operation to Ivex in 1999. Pactuco continues in another Lompoc location.
Pittsburgh-based parent Alcoa Inc. employs 129,000 and had profit of $908 million on 2001 sales of $22.9 billion.
Hamilton Plastics expanding in Tenn.
CHATTANOOGA, TENN. - Film and bag producer Hamilton Plastics Inc. has broken ground on a $3 million expansion in Chattanooga.
President and Chief Executive Officer Harshad Shah said the first phase of the project, construction of a 40,000-square-foot building addition, is scheduled to be done by February. The second phase, installation of more machinery, should be done by mid-2004.
Shah said in an interview that his firm now employs about 100 in a 150,000-square-foot facility in Chattanooga. He did not disclose company sales, but he said they have been growing 10-15 percent a year since he and other investors founded the company in 1986. He estimates current film and bag production capacity at 50 million pounds per year. The operation can extrude film up to 124 inches wide.
Hamilton will add three multilayer blown film lines to bring the firm's total number of extrusion lines to 20. Shah said the company processes polyethylene and other resins, including barrier types, to make bags and films for meat, poultry, medical, polyurethane foam and other markets. Shah attributed sales growth partly to the diversity of Hamilton's customer base.