Charlotte Pipe shutters Las Vegas site
MONROE, N.C. - Monroe-based Charlotte Pipe and Foundry Co. shut down a small ABS pipe plant in North Las Vegas, Nev., that it acquired in the purchase of Standard Pipe Co. last year, and is consolidating the capacity into its plant in Salt Lake City.
Just eight people worked at the Las Vegas plant. There was little room for growth and company officials felt it would be more efficient to combine the plants, said Bradford Muller, vice president of marketing, in a May 16 telephone interview.
Charlotte Pipe acquired Standard Pipe, a $25 million company, in August for an undisclosed sum.
Three of the Las Vegas employees will transfer to Salt Lake City, Muller said.
The company has its eye on the western United States. Muller said housing forecasts suggest 25 percent of all new-construction square footage will be in the West.
``We'd be foolish to not be out there participating in that market,'' he said.
Charlotte Pipe is also building a plant in Cedar City, Utah. That facility is expected to come on line in the latter part of 2007. The company's business is mainly in PVC, but it is growing its ABS portfolio in the West, where ABS is often used as a substitute for PVC in plumbing applications.
Muller said Charlotte Pipe will let the market decide how much PVC vs. ABS the firm will process between its two Utah facilities. In addition to Salt Lake City, Charlotte Pipe also has extrusion facilities in Monroe; Wildwood, Fla.; Cameron, Texas; Huntsville, Ala.; and Muncy, Pa.
The pipe maker will have seven extrusion facilities once the Cedar City plant is up and running.
Flex-N-Gate to purchase C&A factory
URBANA, ILL. - Flex-N-Gate Corp. will buy one of Collins & Aikman Corp.'s plants out of bankruptcy, and plans to invest $3 million in new equipment for the injection molding facility.
The Evart, Mich., plant has 480 employees making bumper fascia and other exterior car parts. Flex-N-Gate, based in Urbana already makes both metal bumper structures and thermoplastic fascia. The firm is in line for more than $3.8 million in tax incentives from both local and state governments to help finance the new equipment.
Flex-N-Gate also is in the midst of a proposed buyout of a former Visteon Corp. plant in Milan, Mich., that makes bumper fascia and fuel tanks.
The U.S. Bankruptcy Court in Detroit still must give final approval to the sale, but Southfield, Mich.-based Collins & Aikman has been selling off its remaining assets. The company has been operating under Chapter 11 protection for two years.
Collins & Aikman is in the final stages of a planned sale of nine of its plastics operations to Cadence Innovation LLC of Troy, Mich. It also placed its soft-trim business units in Canada under Canada's Companies' Creditors Arrangement Act, a form of creditor protection, as part of a planned sale of those companies to International Automotive Components Group of New York.
Plasticon files for Chapter 11 protection
LEXINGTON, KY. - Plasticon International Inc. announced May 17 it had filed voluntarily for Chapter 11 protection.
``We felt this action was necessary for Plasticon International Inc. and its subsidiary Pro Mold Inc. We will take this time to reorganize and restructure the company and we believe that Plasticon will come out from the reorganization in a much stronger position to compete in our industry.
``We had to take action quickly to defend a precipitous attack from a creditor which had declined to accept a late payment and was apparently interested in seizing control of Pro Mold,'' said Jim Turek, chief executive officer and president of Plasticon, in a news release.
The statement said Plasticon had purchased Pro Mold in December 2005 for cash and a note totaling $3.5 million. The firm said it had $875,000 outstanding on the note. Pro Mold is located in St. Louis.
Plasticon, based in Lexington, was publicly traded on the over-the-counter market. It makes industrial and commercial products from recycled plastics.
In the court filing at the U.S. Bankruptcy Court in Lexington, the company listed assets and debts each totaling about $8 million.