O-I selling units to Visy, eyes Glasspack
TOLEDO, OHIO - Owens-Illinois Inc. plans to sell most of its plastics packaging businesses in Australia and New Zealand to Visy Industrial Packaging for US$60.6 million.
O-I announced Feb. 19 that Melbourne, Australia-based subsidiary ACI Plastics Packaging is selling its operations, excluding ACI's beverage containers business in Australia.
Meanwhile, O-I said it is negotiating to buy Paris-based BSN Glasspack SA, the second-largest glass container maker in Europe, for about US$1.5 billion.
Also, O-I has laid off 40 of 170 workers at a blow molding facility in Belvidere, N.J., citing a downturn in business there.
Toledo-based O-I said it will continue reviewing blow molding operations, a decision first announced Dec. 12. Thomas Young, O-I co-chief executive officer, said selling those operations could reduce debt if the company buys Glasspack.
Owens-Illinois ranked No. 2 on Plastics News' survey of top North American blow molders in 2003, with an estimated $1.1 billion in relevant sales.
Nicholas buys profile plant in Mexico
ALLENDALE, MICH. - Nicholas Plastics Inc. has expanded its operations in Mexico with the purchase of a profile extrusion business to complement existing injection molding in the region.
The Allendale-based firm bought a 28-employee factory from Grupo IMSA in Monterrey, Mexico, for an undisclosed price, renaming it Nicholas Plastics de Mexico.
Nicholas Plastics' N-K Manufacturing Technologies Inc. has an injection molding unit in Monterrey through a joint venture with Mexico's Industrias Gesta. With the extrusion facility, Nicholas will be able to mirror products and processes made in Michigan and Mexico.
The bulk of the business now at the 25,000-square-foot Monterrey facility is for industrial customers. Nicholas will upgrade those operations, adding roll forming, flocking and new technology, while looking for automotive business for the plant.
``We're going to try and grow that business without diluting what they already have,'' Chief Executive Officer Terry Nicholas said in a Feb. 2 telephone interview.
Nicholas products include auto body side molding, lighting and applique seals; office furniture clips and trim; and washing machine trim and seals.
The acquisition in Mexico comes just after Nicholas Plastics sold compounder Vi-Chem Corp. of Grand Rapids, Mich.
Entec plans Tenn. nylon recycling plant
MAITLAND, FLA. - Entec Engineered Resins said it will open a nylon recycling plant at its Manchester, Tenn., compounding site in early April.
The Maitland firm is building the 60,000-square-foot plant to handle increased demand for post-industrial recycled nylon 6 and 6/6 for the automotive market. The plant will use proprietary technology that can allow recycled nylon grades to meet 90-95 percent of the profile of prime grades, officials said.
The site will cost $6 million and $10 million and create 10 jobs.
Entec already operates a 140,000-square-foot compounding plant at the Manchester site, including a 30,000-square-foot expansion completed early last year. The recycling plant will be separate from those operations, officials said. About half of Entec's compounding output is in color compounds.
The company posted sales of about $160 million in 2003 - a jump of more than 25 percent over the previous year - with about one-third of that total coming from compounding. The firm's core business is in distributing engineering resins for a dozen suppliers. Earlier this year, Entec added BASF's line of thermoplastic polyurethanes to its distribution mix, along with TP vulcanizates made by DSM Engineering Plastics.
Container maker Rage plans Va. plant
HILLIARD, OHIO - Rage Corp., an injection and blow molder of containers for consumer packaging, will open a plant in Virginia, according to state and local officials.
The Hilliard company will invest $2 million to renovate leased space in Altavista, Va., and add equipment, said Altavista town manager Bryan Foster. The facility, in a former furniture-making factory, is to open by late summer.
The company will receive about $50,000 in grants from Altavista and Campbell County. Rage expects to hire about 25 workers when the plant opens, Foster added.