Continental adding capacity, workers
SPRINGHILL, LA. - Bingham Farms, Mich.-based Continental Structural Plastics Inc. is adding space, machinery, production capacity and employees to its Springhill compression molding facility - a move company officials said is necessary to handle a growing workload.
CSP employs 215 at the Springhill plant and will have 240-250 workers once the new machines are operating, said Marty Spencer, director of Louisiana operations for the maker of residential air-conditioning bases and automotive components.
``It's going to give us the ability to cover our expanded sales,'' Spencer said. ``Our sales are going up next year and we had to have the additional press capacity to accommodate that growth.''
The firm added 36,000 square feet to the facility. Three high-pressure compression molding machines have been added with immediate plans for two more. Spencer said each machine typically carries a price tag of $500,000 to $1 million, although CSP tries to buy used models.
Bethesda, Md.-based American Capital Strategies Ltd. announced in March that it invested $14 million to acquire CSP, with additional funding from CSP managers and Richard L. Scott Investments LLC of Stamford, Conn.
CSP has estimated annual sales of $200 million.
Acquired Pactiv units get new name: Pregis
LAKE FOREST, ILL. - AEA Investors LLC of New York has chosen a name for the protective and flexible packaging businesses it acquired from Pactiv Corp.
Pregis Corp. is the new entity, with a management team that has James Morris as its chief executive officer. Morris had been Pactiv's senior vice president and general manager for protective and flexible packaging.
Other former Pactiv executives comprising senior management are Andy Brewer, president of protective packaging in North America; Peter Lewis, president of protective and food-service packaging in Europe; Bill McBee, president of Hexacomb; Hartmut Scherf, president of flexibles; and Dieter Eberle, president of hospital supplies. Also, Kevin Corcoran was named chief financial officer.
Pregis officials still are deciding on headquarters. For now, the new firm's offices will remain at Pactiv's Lake Forest headquarters. Pregis' European base is in Amstelveen, Netherlands.
The acquisition closed Oct. 13. AEA Investors paid about $530 million for the businesses, which operate more than 30 plants and had 2004 sales of $838 million.
Products that Pregis acquired include Microfoam and polyethylene foam sheet products, Hexacomb honeycomb, bubble wrap, engineered foam plank and flexible films, according to a Pregis news release.
Pactiv reported total 2004 sales of about $3.4 billion.
New Jer-Den plant closer to customers
SCOTTSBURG, IND. - Rotational molder Jer-Den Plastics Inc. is setting up a second production operation to be closer to a few key customers.
Jer-Den is leasing a 22,500-square-foot building in Scottsburg and renovating and equipping it for opening this month, Jer-Den General Manager Jeff Stahl said by telephone. It plans to buy the building within a year, Stahl said. The building is expandable to 60,000 square feet.
The private firm will install a Ferry rotomolding machine with a 120-inch swing and auxiliary equipment in Scottsburg. Stahl estimates his firm is spending about $500,000 on equipment for the new operation.
The site puts Jer-Den closer to customers in southern Indiana and northern Kentucky. Its head office plant is in St. Louis, Mich.
Jer-Den has a diverse customer base including agriculture, marine, materials handling, recreational vehicles, toys and construction. It runs four rotomolding machines in its 35,000-square-foot St. Louis operation and offers custom color mixing, flame treating, routing, hardware installation and spin welding as secondary services.
The firm has a sister company, custom profile extruder Alpha Plastics Inc., that shares a 61/2-acre site with the rotomolder. Jerry Sprague and Dennie Howe founded the firm in 1995.