Decoma plans to buy during downturn
CONCORD, ONTARIO - Decoma International Inc. wants to use its financial strength to seek out ``selected acquisitions'' during an expected auto industry downturn.
In a Feb. 19 conference call with analysts, President and Chief Executive Officer Alan Power and Chief Financial Officer S. Randall Smallbone both said the Canadian auto supplier is in a good position to seek out purchases during 2003.
``There has never been a more fiercely competitive time,'' Power said. ``We predict the fallout will be intense. Decoma is in position to be one of the consolidators. The current environment allows excellent opportunities for select acquisitions.''
The Concord-based exterior specialist already has launched a $10 million bid to buy Peguform GmbH's four plants in France. The European company is in insolvency, with a French court overseeing the sale. There is at least one other bid under consideration. Smallbone said Decoma expects a response from the court by mid-March.
Beyond potential buyouts, Decoma also expects continued growth in two new market areas launched in the past year, Power said: composite running boards and thermoplastic vulcanizate auto-body-sealing systems.
The firm listed a profit of US$93 million for 2002 on sales of $2 billion, up from profit of $68.7 million in 2001 on sales of $1.8 billion.
Allmand Industries assets auctioned
LIVONIA, MICH. - The assets of injection molder Allmand Industries Inc. went up for auction Dec. 17.
According to Williams & Lipton Co., the auction company orchestrating the sale, about 250 buyers from 20 states purchased the assets of the Livonia-based firm.
Plastics News estimated Allmand's 2001 sales at $20 million and employment at 250 among three plants.
The advertisement for the auction reported that 17 injection presses with clamping forces of up to 3,000 tons would be sold. Total price of the auctioned assets was not disclosed.
Allmand made prototype and low-volume injection and liquid molded parts as well as zinc alloy and aluminum tooling, according to the Michigan Economic Development Corp.'s Web site.
A message left at the number of a Livonia listing for Allmand President Francis Price was not returned. The firm's phone and fax numbers were disconnected.
Compounder Ferro won't exhibit at NPE
CLEVELAND - Ferro Corp., a major polypropylene compounder based in Cleveland, will be sitting out NPE 2003.
``We've decided not to do the show this year, but rather to use our funds to work directly with key targeted accounts,'' said John Comanita, vice president and general manager of Ferro's plastics unit.
Ferro now becomes the third significant materials supplier - joining Dow Chemical Co. and Eastman Corp. - to pull out of North America's largest plastics trade show.
``We went through a lot of discussion with several customers, suppliers and associations and determined that participation wasn't going to be strong enough from our core customer base,'' Comanita said. ``We like to justify our participation through customer meetings and we determined we wouldn't be getting enough of them this year.
``A lot of customers are controlling discretionary spending. Some who used to stay [at NPE] for the whole week told us they were only going to be there for one or two days this year.''
Comanita declined to estimate how much Ferro typically spends at NPE, but said the firm usually sends more than 100 employees to staff its booth and meet with customers. This year Ferro will have fewer sales and marketing personnel attending the show and visiting with customers, he said.
NPE 2003 - organized by the Society of the Plastics Industry, Inc., a Washington-based trade group - is set to run June 23-27 in Chicago.
``We know it's going to be a great show,'' SPI spokeswoman Bonnie Limbach said. ``It's unfortunate Ferro isn't going to be with us.''
NTM worker killed by falling resin bag
MAULDIN, S.C. - A worker at NTM Inc. was killed Feb. 14 when a 1-ton bag he was repairing apparently fell, burying him beneath a mound of plastic pellets.
Tracy Bernard Dendy, 40, was working in NTM's warehouse repairing a tear in one of the 5-foot-wide and 4-foot-tall bags, according to news reports. A co-worker said one of the bags had fallen, trapping Dendy underneath.
Occupational Safety and Health Administration spokesman Jim Knight said the investigation could last six weeks.
NTM officials could not be reached for comment.