Clawson Container Co. plans to buy a Georgia blow molding plant from sometimes-competitor Greif Inc., continuing Clawson's rapid growth in plastic intermediate bulk containers.
The sale, expected to close by late August, includes a 5,000-square-foot plant in Lawrenceville, Ga., and will allow Clawson to start blow molding IBCs in the South, Clawson's vice president of sales, David McKenna, said July 7.
``By assuming an existing facility rather than starting from the ground floor with our own, we can have an immediate impact on a growing part of our business and better meet the needs of our customer base,'' said McKenna, who is based at Clawson's headquarters in Clarkston, Mich.
Greif, a large maker of industrial drums, containers and paper products based in Delaware, Ohio, has another blow molding facility about 60 miles away in Lavonia, Ga., said spokeswoman Deb Strohmaier. The publicly held company is undergoing what it calls a transformation process, looking at all its facilities to determine where it can gain efficiency, she said.
``We're refining how we do business, and our Lawrenceville plant was looked at,'' Strohmaier said. ``By [selling it], we can reduce costs and gain some economies of scale.''
Sales of blow molded IBCs have grown 12-13 percent annually during the past five years, McKenna said. The company also makes rotational molded bulk containers at a Michigan plant.
The Lawrenceville plant has 37 employees and one extrusion blow molding line making the tubular-style IBCs from high density polyethylene, McKenna said. Clawson plans to use the plant's existing equipment, he added. Terms of the sale were not disclosed.