Sunshine Plastics Corp. has sold an operation that imports commodity bags and plans to concentrate on higher-end domestic extruding, printing and converting jobs.
Allied Plastics Inc. of Bell, Calif., acquired Sunshine's import stock bags division effective Dec. 1, the companies announced. Terms were not disclosed.
``Sunshine has completed a shift from the commodities market by selling off the division,'' said James Chuang, Sunshine president and owner. Sunshine will focus on a ``more profitable niche,'' supplying bags and pouches for fresh-cut produce, bakery goods, toilet tissue, fresh and frozen fish, bare-root roses and medical uses such as biospecimens.
The change will free up some space in Sunshine's 56,000-square-foot space in Montebello and 30,000 square feet in nearby Pomona, Calif.
``We upgraded the [extrusion] dies and screws in the last two years ... and went after niche businesses,'' Chuang said.
For some customers with food safety and bioterrorism concerns, ``we upgraded our systems to be compliant with our customer base,'' Chuang said. Most are located in the West and Southwest.
Sunshine extrudes low density and linear low density polyethylene, ethylene vinyl acetate, linear tear and specialty blended and coextruded films.
Sunshine operates five extrusion lines primarily from Gloucester, four printing presses with capability up to eight colors, and 20 converting lines for wicketed, slit, double-seal, mixed-seal, Ziploc-brand and specialty bags.
Sunshine targets the high-end rotogravure printing market using solvent-based inks.
``Our ink lay downs are so good the gloss pops off the shelves,'' Chuang said. For certain products, Sunshine retains connections with makers of plastic bags in Asia because a bag maker ``cannot be one-dimensional.''
Chuang's family established Sunshine in 1981 to import PE bags and began domestic manufacturing in 1986, initially in Paramount, Calif.
``We have had aggressive growth in the last five years,'' Chuang said. While he would not provide figures, sales have more than tripled, he said. The firm employs 90.
Sunshine installed a catalytic oxidation incinerator from Megtec Systems in 2000 to capture volatile organic compounds that are hazardous to the environment. The system replaced a Bohn Biofilter Corp. biofilter bed that functioned as a low-temperature catalytic oxidizer.
For Allied, the volume of commodity bags will add about 6 percent to sales, said Thomas MacMillan, Allied president.
Allied, a bag importer, moved Oct. 1 into an 18,000-square-foot, high-ceiling warehouse from a nearby 11,000-square-foot facility in Bell.