Eimo shutting U.S., Europe factories
LAHTI, FINLAND - Lahti-based injection molder Eimo Oyj will close factories in the United States and Europe in a restructuring aimed at consolidating production and cutting low-margin contracts.
Eimo's plants in Battle Creek, Mich., and Helmond, the Netherlands, will close in 60-90 days, cutting overall employment for the firm by more than 200. Eimo will consolidate manufacturing in Vicksburg, Mich., and at factories in Finland and Hungary.
``In addition ... Eimo continuously evaluates the need for labor at its other sites worldwide,'' executives said in an April 30 report on first-quarter activities. ``The company expects that at least temporary layoffs will be required also later in the year at some facilities.''
The closures also end nearly all of Eimo's automotive production. The Battle Creek plant, formerly owned by Triple S Plastics Inc., had molded components for Magna International Inc. The bulk of Eimo's work is in the mobile telephone industry.
The shutdowns come as Eimo's overall sales dropped to $60 million (53.5 million euros) for the first quarter from $74.9 million (66.7 million euros) for the same period last year. Profit also dropped to $328,000 (292,000 euros) for the quarter, compared with $3.3 million (3 million euros).
MGM completing $5 million expansion
HENDERSONVILLE, TENN. - Vinyl profile extruder MGM Industries is completing a $5 million expansion at its operation in Hendersonville.
MGM nearly is done building a 100,000-square-foot addition, boosting its floor space to 300,000 square feet, according to engineer Stephen Prather. The expansion includes installation of PVC powder silos and a 40-millimeter Davis-Standard extruder, Prather said in a telephone interview.
The company entered vinyl extrusion three years ago. Before that it bought profiles to supply its window and door fabricating operation. It decided it could improve quality and costs by doing its own extrusion in-house, Prather said. The firm makes its own profiles and has begun to sell some to other manufacturers.
In addition to physical expansion, MGM is broadening its product line and capabilities. It is adding fencing and decking to its lineup, and expanded its machine shop to make its own extrusion dies.
Prather estimated MGM annual sales at $16 million.
Sigma acquiring Rollpak stretch film line
LYNDHURST, N.J. - Sigma Stretch Film Corp. will increase capacity at its Belleville, Ontario, plant by acquiring a stretch film line from Rollpak Corp. of Goshen, Ind.
Bob Nocek, Sigma Stretch president and chief operating officer, said the 20 million-pound-per-year line will boost Belleville's capacity to 55 million pounds. The plant already runs a cast film line and a blown film system. Nocek said in a telephone interview that Sigma Stretch's market share is growing in Canada and its current cast film line there has been sold out for six months.
Lyndhurst-based Sigma Stretch will have the former Rollpak line running in Belleville in about three months. It is a Battenfeld Gloucester system, the brand Sigma Stretch uses at all five of its production plants. Nocek did not disclose how much his firm paid for the line. The relocated line and the recent addition of a blown stretch film in Tulsa, Okla., will lift the company's annual capacity to 280 million pounds.
Rollpak entered stretch film production seven years ago, but is exiting the market to focus on its core industrial can liner business. It decided not to make significant investments needed to advance its position in cast film production, said Rollpak President Dale Weaver.
Chemtech Plastics adds 2 Toyo presses
ELGIN, ILL. - Chemtech Plastics Inc. is continuing its flurry of expansions, spending more than $280,000 on two Toyo presses.
A 400-ton press started production March 10 and a 90-ton Toyo is to be delivered to the Elgin-based custom injection molder next month. Mike Prevezianos, Chemtech's sales and marketing manager, estimated the cost of the 400-ton press at $250,000, and the smaller press at $35,000-$40,000.
He said the purchases are necessary to satisfy the growth Chemtech has been experiencing. The $13 million, 110-employee firm saw 16 percent sales growth last year and is predicting growth of 30 percent this year.
In addition to the electrical, automotive and communications markets, Chemtech has been targeting the medical segment.
Chemtech, which operates 25 presses with clamping forces of 28-400 tons, began expanding three years ago. In 1999, it more than doubled the size of its plant to about 62,000 square feet and has added 11 presses and two pad-printing machines during that time.