Oneida Rostone Corp. has sold some assets at its Lafayette, Ind., thermoset molding plant.
Kurz-Kasch Inc. of Dayton, Ohio, bought certain pieces of molding equipment from the facility, confirmed Kurz-Kasch President Neal Allread. Kurz-Kasch will continue to run the equipment in Lafayette over the next four months while it also consolidates the machinery at facilities it runs in Ohio, Allread said in a telephone interview.
Kurz-Kasch makes coils, sensing devices and other electrical and magnetic components mainly from thermoset plastic composites.
Meantime, Industrial Dielectrics Inc. bought compounding equipment from the Lafayette plant and intellectual property rights for thermoset composites, according to Tom Merrell, the firm's vice president of business development. His firm particularly was interested in the intellectual property. The company will relocate the compounding machinery to its Noblesville, Ind., headquarters plant during the next few weeks, Merrell said.
Officials with Oneida Rostone and its parent company, Reunion Industries Inc. of Pittsburgh, declined to explain the fate of the Lafayette plant and its remaining equipment. Sales agents at real estate broker F.C. Tucker Co. of Lafayette would not confirm a local newspaper report that the Oneida Rostone plant and associated land are for sale.
A spokesman for Local 2344 of the International Brotherhood of Electrical Workers said workers at the plant were told production will continue for four months, but that the facility is not competitive due to lack of volume and economies of scale. About 80 IBEW employees are there now, well down from the 300 who worked there a decade ago.
In a separate development, Reunion Industries said it failed to meet a $2.9 million interest payment on Feb. 2 for senior notes totaling $22 million. In a filing with the Securities and Exchange Commission, Reunion Industries said holders of 80 percent of the principal of the senior notes entered a standstill agreement with the company to not take remedial action on the missed payment and to not take action if Reunion Industries misses an interest payment due April 1. Interest of 15 percent per year will be applied to any missed payments.