Film converter and printer Emerald Packaging Inc. has acquired an additional site for manufacturing and warehousing for $5.8 million.
Emerald will maintain its Union City, Calif., headquarters site and use the new location for its first foray into film extrusion.
The two new buildings are also in Union City, and formerly housed a Bemis Co. Inc. extruded film operation. The new site is about three miles from Emerald's existing location.
``We need more space, [and] we don't make our own plastic'' film, said Chief Executive Officer Kevin Kelly.
Bemis was the second-largest film supplier to Emerald. ``We buy resin, toll the manufacturing and buy film on the outside,'' Kelly said in a telephone interview.
The film division of Minneapolis-based Bemis used the site to make monolayer extruded polyethylene film. Bemis closed the operation in September and put it up for sale.
Emerald won a competition among several bidders.
``We were willing to take the building with equipment,'' including 14 extrusion lines, Kelly said. ``We may restart two or three'' of the lines soon.
Emerald made two purchases. Bemis Co. sold two interconnected buildings and 6.7 acres for $3.3 million, and the Bemis Foundation sold an undeveloped 5.6 acres for $2.5 million, said Danny Yu, vice president of BT Commercial in San Jose, Calif., a representative for the sellers.
One 40,000-square-foot building was used for extrusion, and the other 30,000-square-foot building for warehousing.
Emerald is weighing uses for the undeveloped land, and may sell the property.
In addition to the extrusion lines, the site has at least 15 resin silos, two rail sidings and vacuum loaders.
Emerald operates sophisticated printing presses, bag machines and slitters, in manufacturing bags used primarily for packaging fresh fruits and vegetables.
The Bemis site made film but was not involved in printing or converting functions.
Emerald employs 120 and had sales of $30 million for the fiscal year ended Aug. 31.