Newell Rubbermaid Inc.'s major restructuring to exit what the company calls low-profit, ``resin-intensive'' businesses has claimed another factory - this one in Mexico.
DoveBid Inc. will auction the contents of the Rubbermaid Home Products plant in Tultitlan, near Mexico City, on Feb. 23. An ad for the auction said the plant also made products for Newell Rubbermaid's Graco and Little Tikes businesses.
The auction at Rubbermaid de Mexico SA de CV includes 30 injection presses, seven blow molding machines, two rotational molding machines and 12 foam molding presses.
Sandy Springs-based Newell Rubbermaid launched what Chief Executive Officer Joseph Galli has called a ``massive restructuring.'' The company has closed plants - like the landmark Rubbermaid Home Products plant in Wooster, Ohio, last year, and now the Mexico plant - and sold others, such as its Curver housewares business in Europe and a cleaning products plant in Greenville, N.C.
Newell Rubbermaid officials could not be reached for comment. The company has declined to spell out its strategy for plastics manufacturing. But Galli has made it clear the company continues to take a hard look at plastic products. In the company's fourth-quarter conference call with analysts Jan 27, Galli said the firm in 2004 discontinued $270 million worth of sales from products he termed: ``low-margin, non-strategic products that were resin-intensive and basically commodity oriented.'' Of that total, $245 million came from Rubbermaid Home Products, and the rest came from plastic products in the Eldon office products group.
Expect to see more cuts this year: Galli said the company plans to cut another $100 million worth of sales from Rubbermaid Home Products in 2005.
Even with the cutbacks, Newell Rubbermaid still buys about 1 billion pounds of resin a year, officials said in the conference call. The company expects to pay $120 million more for resin this year than in 2004.