SCA buys division of Heritage Paper
NEW BRIGHTON, PA. - SCA Packaging North America has bought the protective packaging business of Heritage Paper Co., strengthening its operations in California.
Heritage, a maker of corrugated cartons based in Livermore, Calif., just entered the protective packaging market in October, when the company bought Mark Container Corp. of San Leandro, Calif. The business consists of a warehouse near Sacramento and a plant in Roseville, Calif., that custom fabricates interior protective packaging using expanded foam and corrugated paperboard.
The Heritage operation will give SCA about $6 million more in sales from new customer accounts, according to SCA, which is based in New Brighton, Pa.
SCA will close the Roseville plant and transfer the work to a nearby facility in Heyward, Calif., the company said in a news release. About 15 jobs will be added in Heyward, with workers in Roseville being asked to relocate. SCA also will maintain the distribution center in Rocklin, Calif., a Sacramento suburb.
The Heritage facility, fabricating foam from polyethylene and polyurethane, will be a complementary fit in Heyward, said David O'Leary, president of SCA Packaging North America. The Heyward plant also molds expanded polystyrene foam and integrates multiple materials for protective packaging.
Heritage will continue to supply SCA with corrugated cartons, O'Leary said.
SCA Packaging is owned by Svenska Cellulosa Aktiebolaget, a global supplier of packaging and personal-hygiene products based in Stockholm, Sweden.
Woo One to reopen
factory in England
HARTLEPOOL, ENGLAND - Component molder Woo One UK Ltd. said it plans to reopen this year, after it was forced to close when its main customer, Samsung Electronics, recently moved production to China and Slovakia with little notice.
The South Korean-owned injection molder closed its Hartlepool unit, cutting 68 jobs. Samsung had announced in January that it was moving manufacturing of microwave ovens and flat-screen computer monitors from its Wynyard, England, factory to China and Slovakia.
``The problem was, Samsung decided to leave Britain and only gave us 12 weeks' notice of the closure. The only thing we could do was to take this drastic action,'' said Woo One Managing Director Keith Boynton.
Samsung accounted for about 90 percent of the Woo plant's workload. The company is seeking new customers to replace that work.
Employees who lost their jobs will have first option to return to work, he added.
Woo One has 20 injection presses with up to 650 tons of clamping force, plus painting, printing and assembly capabilities.
``We are talking to different people and we are going to find new work. We have every confidence the plant will reopen in the third quarter of this year,'' Boynton said.
FlexSol adds seventh
film line at Tenn. site
POMPANO BEACH, FLA. - FlexSol Packaging Corp. continues to expand its Nashville, Tenn., barrier film plant.
The firm is adding another blown film line, its seventh for the site and its third Windmoeller & Hoelscher setup. The new line will extrude 110-inch-wide, three-layer film including barrier layers such as nylon and ethylene vinyl alcohol to make packaging for cookies, cheese, meat and other foods, said FlexSol Chief Executive Officer Brian Stevenson.
FlexSol opened the Nashville plant in mid-2000. The custom-built facility has 100,000 square feet of space and 75-foot ceilings to accommodate blown film production. The company invested about $20 million in the operation and another $12 million in W&H Varex film lines. The latest W&H line is due to be installed by summer. The operation can make film with as many as five layers, Stevenson said in a telephone interview.
The W&H extrusion line addition will be the latest in a series of expansion moves by Pompano Beach-based FlexSol. Last spring it bought multilayer film producer Eclipse Packaging Inc. of Statesville, N.C. It logged sales of $205 million for 2002, including pro forma sales of Eclipse.