Liquid Container to open shop in Missouri
WEST CHICAGO, ILL. - Blow molder Liquid Container LP/Plaxicon Co. will set up a plant in Kansas City, Mo., a local development report said.
The company will occupy a 148,000-square-foot building, according to a report in ThinkKC, a publication of the Kansas City Area Development Council. The plant will employ about 35. Partnering with Liquid Container to bring the company to the city are the Economic Development Corp. of Kansas City, state officials and Kansas City Power & Light. Officials with the development council and Liquid Container declined to provide more details on the project, announced in early March.
Chemtura plans to cut costs, 620 jobs
Middlebury, Conn. - Less than two years after its formation, plastics additives leader Chemtura Corp. is restructuring, in a move that will save $50 million per year but eliminate more than 600 jobs.
Middlebury-based Chemtura announced the plan April 4. The firm will be reorganized from six units into four: polymer additives, performance specialties, consumer products and crop protection. Officials said the structure will direct Chemtura's commercial emphasis to the end-use priorities of its customers.
The firm should begin saving money in 2008, officials said. The 620 jobs to be cut represent about 10 percent of Chemtura's work force. Most employees will be notified by the end of the second quarter of this year. Chemtura will record a charge of between $25 million and $35 million for the restructuring.
Chemtura formed in 2005 when Crompton Corp. bought Great Lakes Chemical Corp. In 2006, its first full year of operation, Chemtura lost $205 million on sales of about $3.7 billion. Plastics additives now account for more than 40 percent of sales.
C&A seeks OK for Cadence to buy assets
SOUTHFIELD, MICH. - Cadence Innovation LLC of Troy, Mich., could own a big chunk of Collins & Aikman Corp.'s plastics operations as soon as next month.
Southfield-based C&A said it will file a motion seeking court approval of its recent purchase agreement with Cadence. The motion is subject to higher bids for the C&A assets through a bankruptcy court-monitored auction of C&A assets. C&A expects the court to hear the motion in mid-April, followed by a hearing in May that it hopes will approve the Cadence deal. The agreement comprises nine undisclosed plants making interior plastic products for North America's domestic automakers. An April 2 news release said C&A will reveal details when it files its motion.
Meanwhile, C&A faced labor disruptions in Canadian facilities relating to severance payments. Ford Motor Co. and DaimlerChrysler Corp. have agreed to help C&A meet workers' severance demands. The Canadian Auto Workers Union is negotiating with General Motors Corp. about assisting as well.
Blackstone, China pipe firm look at deal
Hefei, CHINA - Private equity firm Blackstone Group LP reportedly may invest in Anhui Guofeng Group Co. Ltd., one of China's largest plastics processors.
According to a story first reported on China Web site www.sohu.com, Guofeng reported in a Shenzhen Stock Exchange filing that it has been in talks with New York-based Blackstone. Guofeng said, however, that it does not know if talks will progress.
A publicly listed subsidiary of Guofeng, Guofeng Plastic, told the Shenzhen exchange that its parent company has not had talks with any other institutions. But, the plastics unit said that ``in order to make the company stronger and bigger, Guofeng Group has the intention to gain suitable strategic investors.''
Officials with the city government in Hefei, where Guofeng is based, invited the chairman and senior managing director of Blackstone Greater China, Antony Leung, to visit Guofeng, according to the statement.
Quoting undisclosed sources, the Chinese Web site said the two companies have been in talks for several months. It reported that the deal could include a joint venture in biofuels.
Guofeng has 5,000 employees and makes pipe, profiles, film and other products. It claims to the largest maker of plastic pipe in China.
Guofeng did not respond to a request for an interview. Blackstone, an investor in several large plastics firms, including Graham Packaging Holding Co., also declined to comment.