A new blow molding company will open in a Cincinnati suburb, entering the market for regulated industrial and food containers after some consolidation among other players.
KLW Plastics Inc. plans to launch the company by April 15 after it finishes installing a dual-head, extrusion blow molding machine from Milacron Inc., said KLW Vice President Mike Legeza on April 4. The company has leased a 40,000-square-foot site in Monroe, Ohio.
The company will make tight-head, high density polyethylene containers of 3½-7 gallons for chemicals and liquid food products such as flavorings and additives. An independent laboratory is testing the bottles now to certify that they meet industry regulations, Legeza said.
Legeza, who owns KLW with a silent partner, was an executive for 15 years with SST Industries Inc., a maker of industrial pails and drums in Loveland, Ohio. SST was purchased in August 2003 by Atlanta-based BWay Corp. After leaving SST, Legeza honored a yearlong noncompete clause before opening his own business.
Since then, Bway also has bought North American Packaging Corp., a producer of injection molded pails and containers. Bway is considered the largest maker of 5-gallon industrial containers in North America. KLW would like to capture some of that market or at least provide an alternative, Legeza said.
``We can cater to small and middle-sized customers,'' Legeza said. ``We're used to running a blow molding business successfully.''
The company also plans to help design molds, fittings and closures for customers. KLW is opening a larger site than it initially needs, to support growth plans, he said. The facility has room to make 400,000 containers annually.
The company is targeting sales of $2.5 million to $3 million for its first year, and has several customers lined up, Legeza said.