Court forces SimRidge into liquidation
AUSTIN, TEXAS - SimRidge Technologies Ltd. has closed its doors, after the injection molder was forced into Chapter 7 liquidation in U.S. Bankruptcy Court in Austin.
The company had filed Aug. 29 for Chapter 11 reorganization, but the filing was converted Jan. 5 to Chapter 7.
SimRidge owns plants in New Braunfels, Texas, and Sanford, N.C. In mid-August, SimRidge sold a Tempe, Ariz., operation now operating as Mercury Quality Systems LLC.
Court-appointed trustee Marsha Milligan of Austin was exploring ways to sell the remaining land, facilities and equipment as a whole before considering breaking up assets. SimRidge customers have been picking up their molds from the company.
SimRidge operated 32 presses in the 116,000-square-foot New Braunfels plant and 26 in Sanford.
In forming SimRidge, majority owners Gary Simons and Hollis Wooldridge led a leveraged buyout of the three-plant Huck Jacobson Plastics Group from an Alcoa Inc. subsidiary in June 2001.
ACC public image campaign up in air
ARLINGTON, VA. - The American Chemistry Council could make a decision on whether to move ahead with its public image campaign at a Jan. 27 board meeting in Boca Raton, Fla.
The group is contemplating spending millions of dollars a year on the effort, which probably will be coordinated with the American Plastics Council's long-running, $19 million-a-year advertising campaign,
ACC spokeswoman Kathleen Ambrose said member companies support the chemicals image campaign, but some question whether the economy is strong enough to make a three-year commitment.
``If you talk to [chief executive officers], they say, `I'm not questioning the efficacy. I'm questioning whether this is the right time, whether we are on an upswing at this time.' ''
``The recovery happened slower than people hoped,'' she said.
ACC officials are not talking publicly about the options they are considering. Even as it contemplates the new ad spending, the Arlington-based group is looking at cutting spending in its core budget by at least 20 percent during the next three years. That does not include spending in its business units.
APC President Rod Lowman said the plastics unit, which is part of ACC, also will review spending plans at the board meeting. ``APC is going to be a smaller APC going forward,'' he said.
The most recent round of ACC layoffs, in December, did not include any APC staffers, Lowman said.
Hyundai presses to replace supplier
MONTGOMERY, ALA. - South Korean automaker Hyundai Motor Co. still is hashing out details of how it will replace a main supplier for its new Alabama assembly plant, but is considering shipping additional work to other companies in the region.
There is a contingency plan to replace the parts previously awarded to injection molder Venture Holdings Co. LLC, said Bill Lang, spokesman for Hyundai Motor Manufacturing Alabama LLC, the business unit overseeing the new plant. The Montgomery facility is slated to make cars under the Hyundai and Kia names beginning in 2005.
``The Venture work may be divided between suppliers, and a significant portion could stay in Alabama,'' he said.
Hyundai's U.S. manufacturing arm broke off a contract with Venture in December. Fraser, Mich.-based Venture, which in March filed for Chapter 11 protection from creditors, could not come up with the full financing to build a 600-employee plant in Prattville, Ala. The carmaker had stated in court filings that if the proposed plant was not up and running on time, Hyundai would face losses of $1 million a day.
Officials with the HPM Division of Taylor's Industrial Services LLC, which was to provide injection molding presses for the factory, did not respond to requests for comments.
Suspension PVC prices get correction
AKRON, OHIO - To align with market averages, the Plastics News resin chart this week reflects a downward correction of 5 cents per pound for suspension PVC resin. The move is a historical correction, reflecting price erosion that occurred between 2001 and 2003, and is not indicative of recent market activity. The change affects only suspension grades of PVC, not dispersion grades.