Extruder Intek Plastics Inc. will shutter a facility in Eau Claire, Wis., by the end of the first quarter. The move will affect about 60 employees.
Intek, based in Hastings, Minn., extrudes foam and a variety of other plastics for use in the window, door and electronics industries. The firm announced the move on Dec. 2. It has occupied the Eau Claire facility since 2000, dedicating production to window and door components.
``It's a step to make us more competitive by reducing overhead,'' said John Penn, president and chief executive officer, in a Dec. 4 telephone interview. ``We're not getting out of any business.''
Eight lines will be transferred from the 51,000-square-foot site in Eau Claire to two existing plants in Hastings, he said. Some employees from Eau Claire will be offered transfers, and an undetermined number of new jobs will be created in Minnesota as that production is moved, officials said.
``Our customers require very competitive prices from us to meet their market needs. We need to reduce our overhead costs while improving our own productivity to meet these requirements for both the near- and long-term benefit of all our stakeholders,'' Penn said in a news release. ``We have years of extrusion experience in Hastings and our two plants can accommodate present and future needs.''
Penn said by telephone that Intek now will be making production upgrades, including enhancements to chilling and material- handling systems.
``That, too, will be a part of our strengthening,'' he said.
Intek earlier this year acquired the jamb-liner business of Caldwell Manufacturing Co., based in Rochester, N.Y. Penn said those operations were integrated into the Hastings site.
In Plastics News' 2003 pipe, profile and tubing ranking, Intek reported $48 million in total corporate sales with 350 employees.