Canyon Floor acquires foam laminates maker
ONTARIO, CALIF. - Cross-linked polyolefin foam and foam laminates producer Toilon Corp. of Ontario has been purchased by investor group Canyon Floor Partners of Phoenix. Terms were not disclosed.
``The thing we found exciting in Toilon is that the polyolefin foam business is very much a niche business, so there is limited competition,'' said Thomas A. Schultz, a principal of Canyon Floor Partners who was appointed president and chief executive officer of Toilon. ``We're in a good position in the Western [U.S.] market,'' he said.
Toilon, which had been part of Tongil Industries of Seoul, South Korea, operates one facility in Ontario. Schultz said the Ontario firm is looking to increase its East Coast presence through partnerships with distributors or by adding plants there.
A company spokeswoman said Toilon's 30 workers will not be affected. Toilon's sales last year were less than $10 million.
Samuel and Sekisui form joint venture
TORONTO - Samuel Manu-Tech Inc. and Sekisui Jushi are teaming up in a joint venture to make and sell polypropylene strapping in North America.
The partners plan to make strapping at Sekisui's plant in Cartersville, Ga. Toronto-based Samuel Manu-Tech will manage sales and marketing. The firms will invest an unspecified amount in Cartersville. Sekisui has proprietary technology and strapping plants in China, the Philippines, Holland and North America.
The joint venture plans to close a Samuel Manu-Tech plant in Winchester, Tenn., and move production from the 53-employee operation to Cartersville, according to a report in the Winchester Herald-Chronicle.
Aargus Industries consolidating plants
DES PLAINES, ILL. - Aargus Industries, a polyethylene bag producer in the Chicago area, is merging work from two facilities into a larger operation in Wheeling, Ill.
The company, now based in Des Plaines, will shift the operations of that plant and a facility in Addison, Ill., to a new location in Wheeling, said President Jerome Starr. The work is to be completed in February, he said.
Both facilities, which the company will put up for sale, currently have about 46,000 square feet. The new building, purchased by Aargus, will have 128,000 square feet of space, Starr said. The company is investing about $6 million to buy the building and renovate its electrical system, he said.
Aargus, a unit of Lyndhurst, N.J.-based Sigma Plastics Group, had merged three bag producers in 2001 under the Aargus name. The Addison plant had operated under the name Bio Industries.
Aargus performs extrusion, printing and bag converting using high and low density PE. The company recorded sales of about $39 million in 2001, according to Plastics News rankings.
The company does not plan to buy equipment as part of the move, Starr said. Aargus has about 40 extrusion lines, according to the rankings.
Federal-Mogul plan addresses asbestos
SOUTHFIELD, MICH. - Federal-Mogul Corp. is looking to trade its debts and asbestos liability exposure into new stock through a reorganization that will allow it to emerge from Chapter 11 bankruptcy protection.
The automotive supplier said its plan would create a stock base that would turn 49.9 percent of its shares over to debt holders and 50.1 percent into a trust for current and future asbestos claimants. The U.S. Bankruptcy Court in Wilmington, Del., has not acted on the plan, but Southfield-based Federal-Mogul said it has reached an agreement in principle with its creditors.
In 1998, the firm purchased T&N plc, a British business that brought with it asbestos-related lawsuits. Federal-Mogul sought Chapter 11 protection in October 2001. The firm has continued operating through Chapter 11, posting nearly $3 billion in sales in 2001. It makes a variety of automotive systems, with plastics molding for its lighting unit.
Federal-Mogul also is looking to use its existing asbestos liability to help it grow. On Jan. 30, it announced a proposed deal with Honewell International Inc. to acquire Honeywell's Bendix braking systems in exchange for assumption of asbestos liabilities within the friction materials business.
The sale is contingent on bankruptcy court approval.
Farnell Packaging adding equipment
DARTMOUTH, NOVA SCOTIA - Film and bag producer Farnell Packaging Ltd. is expanding and upgrading its printing capabilities.
The Dartmouth-based private firm is installing an eight-color flexographic printing press from Windmoeller & Hoelscher Corp. Farnell founder, owner and President Don Farnell said the new line, due to start in April, will strengthen existing business and should open new opportunities.
``Our customers are getting more sophisticated,'' Farnell said in a Jan. 28 telephone interview.
The 52-inch flexo line will be the first packaging machine Farnell Packaging has bought from Lincoln, R.I.-based W&H. Cost of the purchase was not disclosed.
The new Novoflex printing line is a gearless machine with the latest sleeve technology, according to W&H.
Don Farnell founded his company 42 years ago as a selling agency and gradually entered film production, converting and printing. The firm has been a flexo printer for 20 years. He said the company's 70,000-square-foot facility has enough space to handle the new printing line.
Farnell Packaging has four extrusion lines mainly processing polyethylene and polypropylene for food packaging. It produces most of the monolayer and coextruded films it needs for sale and for in-house bag conversion. The 125-employee operation has annual sales of about C$25 million (US$16.4 million). Its core markets are eastern Canada and the northeastern United States.