Plymouth Rubber files for Chapter 11
CANTON, MASS. - Plymouth Rubber Co. Inc. filed for Chapter 11 protection from creditors July 5 in U.S. Bankruptcy Court in Boston so it could continue operations until a dispute over its secured lenders liens is settled.
The company, founded in 1896, makes and supplies rubber and vinyl tapes, electrical products, films and other products.
Maurice Hamilburg, Plymouth's president, said in a news release that the company filed for protection because Pension Benefit Guaranty Corp. and other secured lenders could not agree on a priority for their respective liens.
The company also said it had arranged a funding agreement with LaSalle Bank NA, which is subject to court approval, that will provide about $2 million for continuing operations.
Plymouth Rubber announced in March it would discontinue manufacturing in Canton within three years. The company set up a joint venture with Hebei Huaxia Group in Shanghai, China, in December, and has been in operation since April making PVC tape. It will reach full production later in the year. The venture is called Plymouth Yongle Tape Co. Ltd.
Plymouth Rubber also has manufacturing plants in Denver and in Porrino, Spain.
Performance Pipe closing Texas plant
PLANO, TEXAS - Performance Pipe of Plano is shuttering its polyethylene pipe and tubing extrusion facility in Waxahachie, Texas, as it exits its Spirolite product line and discontinues production and new sales of fabricated fittings.
The closing will affect 100 employees, officials said in a July 6 written response to Plastics News. The layoff number includes staff consolidation at its headquarters administration office.
``This has been a difficult decision,'' Dave Morgan, general manager of Performance Pipe, said in the statement. ``We have worked closely with our business managers to consider all of our options before taking these actions.''
Performance Pipe is a division of Chevron Phillips Chemical Co. LLC, based in The Woodlands, Texas. It had 2004 estimated sales of $400 million.
Spaulding laying off up to 30 workers
ROCHESTER, N.H. - Spaulding Composites Inc., a Rochester-based manufacturer of specialty composite materials and fabricated components, will lay off as many as 30 employees from its De Kalb, Ill., plant, said spokesman Doug Keslin.
De Kalb County Economic Development Corp. spokesman Roger Hopkins said the layoffs are because a De Kalb operation is being moved to Rochester. Keslin would not provide details.
Hopkins estimates that no more than 70 employees work in De Kalb. The layoffs will be effective in early August, he said.
Spaulding was bought in 2003 by Metapoint Partners, a Peabody, Mass.-based private investment firm.
Access Industries acquiring Basell
NEW YORK - Investment firm Access Industries Inc. will be the sole owner of polypropylene giant Basell NV, after Chatterjee Group backed out of a proposed partnership.
Chatterjee, a New York investment firm with Indian ownership, was unable to buy out the Indian government's stake in Haldia Petrochemicals Ltd., according to a July 6 Reuters news service story.
An alliance of Chatterjee and New York-based Access, which is owned by Russian billionaire Leonard Blavatnik, agreed in early May to buy Basell for $5.7 billion.
BASF purchases Huntsman business
WYANDOTTE, MICH. - BASF Corp. has purchased Huntsman LLC's global toluene diisocyanate business, which will take Huntsman out of the TDI industry.
Neither Huntsman's manufacturing facility in Geismar, La., nor its workers are part of the deal, a Huntsman spokesman said. The transaction, effective July 6, does include Huntsman's TDI customer list and sales contacts to BASF.
About 26 employees will be affected by the closure. However, most of them will be transferred to other Huntsman operations.
``The impact will be minimal at worst,'' he said, ``and some will opt for early retirement.''
The facility produced about 90 million pounds of TDI a year.
BASF's North American headquarters is in Florham Park, N.J.