Custom injection molder Carolina Precision Plastics LLC will relocate a recently acquired business into a new home in Greensboro, N.C.
Carolina Precision has decided to invest about $4.5 million in a plant in Greensboro, where it will move Augros Inc. of Ronkonkoma, N.Y. Carolina Precision bought Augros, a cosmetics and fragrance packaging producer, in July after Augros' French parent, Augros Cosmetics Packaging SA, began selling North American assets while it reorganized under protection from creditors.
Ron Skinner, Carolina Precision chief operating officer, said in a telephone interview that the Augros move should be complete by the end of the year. The Greensboro plant initially will employ about 100, with that level rising to about 150 as Carolina Precision adds new business and anticipated acquisitions to the operation over three years.
Skinner said the plant will focus on cosmetics and fragrance packaging, among its fastest-growing markets.
The investment at Greensboro includes buying the 80,000-square-foot building, upgrading it, adding equipment and moving the Augros assets there, Skinner said. The building was owned by Core Systems LLC, a vehicle and appliance molder that decided to relocate production to its Ohio plants. Skinner said Carolina Precision intends to hire many of the former Core workers.
Skinner said his firm had planned to move the Augros unit to Carolina Precision's head office plant in Asheboro, N.C. The company, however, added new business in consumer packaging there, leaving it with insufficient space for the Augros work.
``The state of North Carolina has been a terrific business partner of Carolina Precision Plastics throughout our 20 years of operation in Asheboro,'' Carolina Precision President and Chief Executive Officer Brian Tauber noted in a news release. The state is contributing $150,000 toward the cost of the Greensboro project. The Greensboro plant will pay weekly wages averaging $736, plus benefits - well above the local average.
The Augros plant employed about 70 and ran 30 injection presses when Carolina Precision bought it. Its purchase boosted Carolina Precision's cosmetics and fragrance packaging stake and added powder boxes and makeup compact cases to its product mix. Carolina Precision estimated the Augros deal would boost its annual sales by 50 percent to about $30 million.
Skinner said several factors weighed against keeping the Augros work in Ronkonkoma, including that the firm's customer base is concentrated in the Southeast and the Ronkonkoma site's lease expires at the year's end.