Film and bag maker Desert Plastics LLC temporarily has stopped production at its two facilities.
Officials from the Phoenix-based extruder did not return several calls seeking comment before deadline.
Desert Plastics announced a temporary shutdown of its facility in Summit, Miss., to economic development officials this week.
The Summit site operates as Desert Plastics Mississippi LLC.
``They told me they've temporarily shut down while they assess the situation on resin,'' said Britt Herrin, executive director of the Pike County Economic Development District and Chamber of Commerce in Mississippi. ``They've been very clear about that [temporary status],'' Herrin said in a March 4 telephone interview.
Still, the temporary shuttering caught Herrin by surprise because as recently as two weeks ago, company officials had been talking about expanding at the 125,000-square-foot site and adding employees.
Desert opened that plant in 2002. It currently has five lines and employs about 50.
But industry officials said the shuttering is not a surprise, given the impact of escalating resin prices.
``It really is indicative of the tremendous impact that resin prices are having on middle-market extruders,'' said Tom Blaige, chief executive officer of Chicago-based equity firm Thomas Blaige & Co. LLC.
``It's going to get worse before it gets better,'' Blaige said of expecting more companies to follow suit. ``I'm trying to be not extreme here, but it's really a problem.''
According to information service Thomson Gale of Farmington Hills, Mich., Desert Plastics was founded in 1998 and has estimated sales of $26.7 million.
