Berry Plastics Corp. has a foothold in Latin America after buying the closure assets of Mexican molder Euromex Plastics SA de CV.
Euromex, owned by SP Berner Plastics Group SL of Aldaya, Spain, will continue to injection mold furniture in Mexico, but opted to sell the closure operation.
Berry bought some equipment from Euromex, and will lease its 185,000-square-foot plant in Toluca, Mexico, said Fred Heseman, Berry corporate vice president of operations, in an April 12 telephone interview.
The purchase includes 21 injection presses with clamping forces of 250-350 tons, and support equipment, Heseman said. The Toluca plant, near Mexico City, employs 180. Terms of the April 11 deal were not disclosed.
Berry will mold specialty closures, such as aerosol overcaps for household chemicals and flip-top closures for food applications, Heseman said. Euromex's products are similar to what Evansville, Ind.-based Berry makes in the United States.
``We have a very similar customer base,'' he said. ``We're trying to be more of a global supplier to our customers, as well as gain some customers that are producing in Mexico and that have asked us to get closer to their [facilities].''
The deal adds more than $8 million in annual sales to Berry, according to a Berry news release. Berry recorded $814.2 million in total sales during 2004, $127.5 million of that in closures. The company also makes open-top containers, drink cups and housewares.
Until the purchase, Berry had no plants in Latin America and only two plants outside the United States, in Italy and England.
The Toluca plant has room to expand into other products, Heseman said.
Euromex is looking for another facility to mold furniture - including plastic chairs and tables - and will work temporarily from the Toluca site, Hesemen said. The plant has 18 other molding machines that Berry did not buy.
SP Berner, Euromex's owner, is one of Spain's largest injection molders. The company operates two plants in Aldaya and two in Chiva, Spain.
The company has more than 700 employees in Europe and molds consumer, industrial and furniture products.
Berner opened the Toluca operation to follow some European customers. Berry hopes to take on that business, he said.