Judge bans Extreme co-owner from work
ALBANY, N.Y. - Extreme Molding LLC co-owner Joanne Moon has been barred from working at the Albany injection molder, the result of a dispute with a former employer.
Saint-Gobain Performance Plastics Corp. of Wayne, N.J., filed a breach of contract suit seeking a restraining order Jan. 10 against Moon in U.S. District Court in Albany. Saint-Gobain alleged Moon violated a noncompete clause with that company, which she left in September.
Judge Thomas J. McAvoy issued a restraining order preventing Moon from working at Extreme Molding, a firm that started operating in April.
Extreme Molding co-owner Lynn Momrow was reached Jan. 21 and said the company had no comment. Saint-Gobain lawyer Conrad S. Kee also declined to discuss the suit.
Resin broker doing prison time for fraud
MACON, GA. - Former resin broker Samuel Madonian has been sentenced to 21 months in prison for defrauding customers between 1996 and 1998.
Madonian, former owner of Macon-based Sheetex Inc. and Dixie Pak LLC, had pleaded guilty in October to one count of concealing assets in anticipation of a bankruptcy proceeding and one count of mail fraud for shipping inferior-grade resins to customers, then refusing to return payments, according to the U.S. Attorney for the Middle District of Georgia. In other cases, Madonian would accept payment and ship nothing at all, officials said. Madonian formed Dixie Pak in August 1998, two months after Sheetex filed for bankruptcy, according to a Jan. 23 news release from the U.S. Attorney's office.
Under federal guidelines, the 42-year-old Madonian is not eligible for parole. His sentence also includes three years of supervised release after his jail term. In addition, Madonian was fined $40,000 and ordered to pay more than $192,000 in restitution to three customers: Resin Management Corp. of Tampa, Fla.; PlastiCycle Corp. of White Plains, N.Y.; and CM Polymers of Montvale, N.Y.
A 1999 Plastics News story covering Madonian's struggles estimated his total debt at more than $3.6 million, including $2.3 million he had withdrawn from a Foothill Capital Corp. credit line.
Madonian, who had been free on bond awaiting sentencing, was taken into custody immediately after the Jan. 23 sentencing.
ADS buys Quail corrugated pipe business
HILLIARD, OHIO - Advanced Drainage Systems Inc. has gobbled up Quail Piping Products Inc.'s corrugated polyethylene pipe business.
In the deal, which closed Dec. 31, Hilliard-based ADS acquired two corrugators from Quail's plant in Kingman, Ariz., and its customer list, officials said. Quail is based in Magnolia, Ark.
Randy Barton, executive vice president of Quail, said his firm will remain a player in the U.S. pressure pipe business, in medium density, high density and PE100 pipe. There has been widespread speculation that larger players are seeking to take over that part of Quail, however.
Quail also operates facilities at its headquarters location and Le¢n, Mexico. The firm reported $48.5 million in extrusion sales for 2002 with 150 employees and 15 extrusion lines. ADS is one of the largest players in the corrugated market, along with Findlay, Ohio-based Hancor Inc.
ADS has 22 plants with an estimated $361 million in extrusion sales, according to Plastics News data. Officials with that firm did not return calls seeking comment.
Durakon thermoforming plant stays open
LAPEER, MICH. - Durakon Industries Inc. has revised its plans and decided to keep its Lapeer plant up and running - for now.
In October the company announced it would close the thermoforming operation by early 2003 ``because of competitive factors in the marketplace.'' In a Jan. 24 news release, officials announced the firm had reached an agreement with members of the United Auto Workers to keep the plant open for another year while exploring cost-cutting options.
``We are hopeful that by working with the UAW and the community, we can reduce manufacturing costs,'' the firm said.
Durakon is the second-largest producer of thermoformed pickup-truck bedliners in North America. Its original decision to close manufacturing in Lapeer - but retain its corporate and technical headquarters in the city - came when the firm could not reach wage and benefit concessions with union members.
The plant employs about 200.