ST. LOUIS - Defense company Engineered Support Systems Inc. announced April 21 it has a buyer for its plastics operations.
Equity investor PowersCourt Group Inc. of St. Louis bought the businesses for $7.4 million in cash and other considerations. The deal includes two firms: injection molder Engineered Specialty Plastics Inc. and nonmetallic faucet producer Lifetime Faucets Inc., both of Hot Springs, Ark. Engineered Specialty Plastics also operates a division in Bossier City, La.
The two units employ about 150, said Dan Kreher, ESS acquisitions director. Those employees will be retained ``as far as we know,'' he said.
Officials from PowersCourt could not be reached for comment.
St. Louis-based ESS first announced its intention to sell the companies in May 2002. The firms had sales of $17.6 million in 2002, down from $26.1 million in 2000.
According to a news release, Gerald Daniels, ESS vice chairman and chief executive officer, said the deal was made because the plastics operations were noncore aspects of the firm.
``Having endured three-plus years of depressed revenues and marginal financial performance in our commercial plastics segment, we believe that our shareholders will be better served by the redeployment of both the monetary and human capital from this area to our core defense business units,'' he said.
PlastiCycle opens Tenn. recycling plant
WHITE PLAINS, N.Y. - PlastiCycle Corp. recently opened a leased, 50,000-square-foot recycling facility in Nashville, Tenn.
Joe Cirillo, president and chief executive officer, said PlastiCycle has about $300,000 invested in the plant.
``Nashville right now is an area that has a lot of benefit for us,'' he said. ``We decided to open in Nashville to support our suppliers.''
The company expects volume at the location to be about 60 million pounds per year. The plant will deal with automotive scrap and nonwoven material, Cirillo said. According to a news release, the location will put an emphasis on polyethylene and polypropylene.
Cirillo said the facility, which employs eight, is at about 50 percent capacity right now and expects to be at full capacity within six months.
PlastiCycle, based in White Plains, also operates facilities in West Palm Beach, Fla., and Monterrey, Mexico.
Expanding JSJ adds 1,000-ton Engel press
SANFORD, N.C. - JSJ Plastics Inc. has boosted its custom injection molding tonnage capability as part of a $1 million expansion project.
The Sanford firm installed a new, 1,000-ton Engel press the week of April 21 for undisclosed new business, said President Bob Snyder. The installation followed the recent addition of a computer numerically controlled trimming machine. New materials-loading and regrind equipment also is being added, Snyder said in a telephone interview.
JSJ now has 23 injection presses and three compression molding machines for thermosets. Its previous largest press was 710 tons. Snyder said JSJ's main markets include aerospace, electrical, health care, industrial and commercial.
The firm formerly had three plants in Sanford but it recently sold one and moved the equipment to its two 30,000-square-foot facilities there.
A subsidiary of JSJ Corp. of Grand Haven, Mich., JSJ was acquired in 1986 and used to be called Federal Molding. It is the parent firm's only plastics business. In addition to U.S.-based businesses, JSJ Corp. has operations in Mexico, Germany, India, China and Japan.
JSJ Plastics processes high density polyethylene and a range of engineering resins. The 85-employee operation logged sales of $8 million last year.
Dow unit to market Cyclics PBT materials
AUBURN HILLS, MICH. - The Dow Automotive unit of Dow Chemical Co. will market new polybutylene terephthalate-based materials made by Cyclics Corp. of Schenectady, N.Y.
Dow Automotive of Auburn Hills announced it will develop automotive structural composites, crash-energy-dissipation and occupant-protection systems and other applications. Initial target uses include vertical and horizontal body panels, truck boxes and tailgates.
Cyclics CBT materials are oligomers of PBT that are solid at room temperature. When heated they have low viscosity, allowing high filler loadings and thermoset processing methods. A catalyst hardens CBT into a thermoplastic-like solid that is tough and recyclable.