Simona AG of Kirn, Germany, is buying the extrusion unit of HPG International Inc. of Mountaintop, Pa., for an undisclosed price to build its American presence.
The HPG unit will become part of a new entity, Simona America Inc. Production will continue at HPG initially, but will be relocated to another facility in 2004.
Walter W. Janshen, sales and marketing board member at Simona AG, was named president of Simona America. Ulrich R. Nickisch will serve as executive senior vice president and chief operating officer. Other officers include John Ploskonka, executive vice president of sales and marketing, and Ron Mackunis, controller, treasurer and secretary.
The extrusion unit accounted for about $12 million in sales at HPG and employed about 30, according to John Dellevigne, HPG president. He said HPG is exiting the extrusion business to focus on calendering flexible products. The company filed in December 2001 for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code and emerged from the process in October.
Dellevigne said the bankruptcy process pared $5 million in costs from its business, which now employs 240 in a 250,000-square-foot facility in Mountaintop.
Simona AG makes plastic sheet and rods and employs about 2,000 worldwide. Simona will sell HPG's line of Versadur-brand industrial sheet and will offer new sizes and dimensions for the chemical and semiconductor industries. Simona America also will offer foam sheet products for the advertising industry. Other new products will include solid rods and welding rods.