Royal Group Technologies Ltd. plans to divest an injection molding subsidiary and other noncore business assets that the company said will fetch between US$30 million and US$40 million.
The Woodbridge, Ontario-based building products giant will offload Royal Dynamics Co., which injection molds building products for other Royal divisions.
Royal Dynamics is based in a 152,000-square-foot plant in Woodbridge, and does large-tonnage injection molding. It has more than 25 presses and 100 employees, according to a company Web site.
Royal officials did not return telephone calls.
Royal is in the midst of a plan to divest about US$260 million in noncore businesses and 40 percent of its manufacturing and warehouse space this year.
To date, Royal has sold about US$190 million in business assets, including real estate, manufacturing and warehouse space.
``We continue to evaluate opportunities to focus Royal Group on those businesses that best leverage our strengths, while at the same time taking actions to improve manufacturing efficiency to help us achieve an appropriately scaled manufacturing footprint,'' said Larry Blanford, Royal's chief executive officer, in a news release.
Atlanta-based Georgia Gulf Corp. agreed to buy Royal Group for US$1.6 billion in June. The deal is scheduled to close Oct. 3.