Consolidated Container Co. LLC of Atlanta is shuttering one plant and expanding another, as it announces the completion of its deal to acquire Steel Valley Plastics Inc. in Warren, Ohio.
The Dec. 15 announcement from the blow molder means Consolidated Container will close an existing plant in Leetsdale, Pa., by mid-February. That plant has roughly 50 employees, according to officials with Leetsdale Borough. According to Consolidated's 2004 annual report, that site is 42,000 square feet.
It will add two blow molding lines to the newly acquired plant in Warren, and up to 30 workers.
The two blow molding lines will not translate into new equipment purchases, but rather just re-aligned existing capacity within Consolidated, officials said.
When asked why officials selected the Leetsdale site for closure, Jeff Greene, Consolidated's chief executive officer, said: ``We didn't choose the site for closure. We chose an opportunity to make a strategic acquisition. The primary reason is the machinery in Warren is newer. It's equipment that's more in line with Consolidated's standard operating platform.''
Greene also said the Warren site is owned, and the Leetsdale site is leased.
Officials will break ground on the expansion after the first of the year, and be in a position to serve the expanded water market. That season begins in early March and runs through September.
``It's an aggressive plan, but one that we've done before,'' Greene said.
Consolidated announced Dec. 2 its acquisition of Steel Valley Plastics, its third acquisition this year.
The company announced earlier this year that it would shutter its blow molding site in Demopolis, Ala.