Spartech Plastics LLC has confirmed it will consolidate three Midwestern sheet extrusion plants into a new plant to be built in Greenville, Ohio.
The Clayton, Mo., company said it will spend about $7.6 million on the project, which will lead to pretax annual savings of about $2.5 million. It will take about 16 months to build the 165,000-square-foot facility and relocate equipment and personnel.
Spartech President and Chief Executive Officer George Abd said the existing sheet plants in Greenville; Richmond, Ind.; and Clare, Mich., all make similar polyethylene sheet products. They now run 18 extrusion lines, which Spartech probably will pare to 15 or 16 lines in the new plant, Abd said by telephone. About 60 employees will lose jobs in the consolidation since the new Greenville plant will employ about 160.
Abd said the current Greenville building will become a warehouse. The Richmond and Clare sites could be sold, but Spartech is mulling its options.
The Greenville project qualifies for about $312,000 in Ohio tax credits over a seven-year period. The new building will reflect Spartech's Green Initiative program launched last spring. It will incorporate environmentally friendly building materials such as acrylic windows, special wall coverings and roofing based on Spartech products, Abd explained.
Spartech has been expanding its product line to include more goods addressing environmental concerns. Abd said its largest single investment in the area is to install two new sheet lines in its Donchery, France, operation to make zero-emission barrier sheet for automotive gas tanks. Its Rejuven8 line of polylactide sheet for graphic arts is aimed at signage for big-box stores and other outlets looking for biologically based materials.
Replacing fiberglass-reinforced plastic with thermoplastics, and PVC blister packs with polystyrene blisters, are other markets Spartech is developing. Spartech reported a 13 percent increase in sales to $343.6 million for its first quarter, ended Jan. 28. Profit was $5.7 million, compared with $2.8 million for the first quarter of the previous fiscal year.