SAI Holdings Ltd. had hoped to continue making vinyl films for the auto industry when it filed for protection from creditors in November. But now that plan has been scrapped, and the firm plans to sell assets from both its plants.
SAI, which also is known as SanduskyAthol International, filed documents March 28 with U.S. Bankruptcy Court in Toldeo, Ohio, stating its main customer had opted to move all of its business to competitors, forcing the decision to close SAI's plant in Butner, N.C.
In November, Butner-based SAI had filed for Chapter 11 protection, listing a $2 million loss on $127 million in sales for 2005. SAI produces cast PVC and extruded thermoplastic polyolefin films used as skins for auto interior parts such as instrument panels.
At that time, the company planned to close its Sandusky, Ohio, plant, ending 189 jobs, and consolidate production in North Carolina. An auction of the Sandusky assets is set for April 25 and 26, conducted by DoveBid Inc. of Los Angeles.
On March 6, however, auto supplier Lear Corp. informed the company it would re-source all of its business to other companies beginning March 9, according to the court documents. Southfield, Mich.-based Lear represents 75-80 percent of SAI's total sales.
SAI executives ``determined they could no longer continue to operate the Butner facility as a going concern,'' and asked the court to approve a sale of its North Carolina assets.
The company had more than 350 employees in Butner.