Snyder Industries Inc. has boosted its rotational molding capacity and entered steel fabrication with the acquisition of the Asset Tank division of Clawson Container Co.
Snyder has gained an intermediate bulk container rotomolding plant in Mancelona, Mich., as well as steel IBC container fabricating and IBC rental operations there. Snyder of Lincoln, Neb., declined to disclose terms of the deal, finalized Dec. 29.
``This acquisition is a good fit with our existing product lines and strategic focus, and provides an entry into traditional steel markets, which will substantially expand our company's growth opportunities in the greater material-handling and storage markets,'' said Snyder President and Chief Executive Officer Thomas O'Connell in a news release.
Snyder will keep the Mancelona rotomolding plant running in the short term but might decide to move its two large rotomolding lines if market conditions warrant, said Snyder's vice president of sales and marketing, Michael Spurrier. Snyder has four existing rotomolding facilities.
Clawson Container of Clarkston, Mich., has renamed itself IBC North America Inc., coincident with its exit from rotomolded and steel IBCs. It will continue in blow molding high density polyethylene IBCs, which it said are growing rapidly, both domestically and internationally. The company stated it will expand production of the containers, but it did not provide details.
``Management and our sales force are very excited that we can now dedicate 100 percent of our resources to our fastest-growing product segment,'' IBC North America President and CEO Richard Harding said in a news release.
IBC North America Vice President of sales Tim Duncan said blow molded HDPE IBCs are in big demand because they cost a fraction of what a rotomolded IBC sells for. The blow molded types, supported by a tubular steel frame, generally are used once and recycled. Rotomolded types last several years and typically are leased by the user and returned repeatedly for refilling. Steel IBCs also usually are leased and reused.
Demand for rotomolded IBCs has been declining, but the number of producers has shrunk dramatically, allowing those remaining in the market a steady business, according to Duncan.
Snyder's entry into stainless- and carbon-steel IBCs gives it access to new markets where PE IBCs do not meet requirements for chemical compatibility, temperature exposure, sterilization and some regulatory restrictions, the company said.
Spurrier said the Asset Tank purchase is the first major expansion undetaken by Snyder after Cortec Group Fund III bought a majority interest in the business in late 2005. He indicated Snyder is pursuing other acquisitions but would not give more details.