Fabricated Plastics Inc. is buying custom injection molder Topcraft Precision Molders Inc. and consolidating the two companies' operations in Topcraft's Warminster, Pa., plant.
Fabricated Plastics is winding down operations at its own factory in Morristown, N.J., which will close by the time the consolidation is complete in January.
The new company will be known as FPI Topcraft LLC, according to Sebastian Murray, president and chief executive officer. He will own the new company along with his brother Samuel, who is chief operating officer.
Fabricated Plastics does business as FPI Thermoplastic Technologies, and has notified the state of New Jersey that it plans to begin laying off 80 of its workers by Sept. 24. Overall, the injection molder employs about 100.
Sebastian Murray said most of FPI's employees have been offered work at the Pennsylvania site, and he expects a majority to make the 60-mile commute, or move. He said a skeleton crew will run the New Jersey operation until the consolidation is complete.
The merger will allow FPI to extend its reach into precision component markets, such as automotive, where Topcraft has a big presence. FPI has operated in the cosmetics, point-of-purchase display, fire and food markets. It has a proprietary line of cosmetic organizer trays and shower organizers that are sold through national retailers.
The lure of Topcraft, Murray said, is that it has a modern, 78,000-square-foot, state-of-the-art facility and is certified under ISO/TS 16949:2000 and ISO 9001:2000. Topcraft has about 80 employees.
Fabricated Plastics started out as Hungerford Plastics in 1946 and later became part of Air Products and Chemicals Inc. Brian Murray bought the company in 1978. When he retired in 1996, he sold it to his sons, Sebastian and Samuel.
FPI has operated out of its 83,000-square-foot facility in Morristown since 1956.
Sebastian Murray testified in June 2005 before the Senate Committee on Commerce, Science and Transportation. In that testimony, he said a U.S. retailer's transfer of an account to China in 2000 nearly put the company into bankruptcy.
However, he credited the New Jersey unit of the Manufacturing Extension Partnership with helping the company rebound to where it was expecting $25 million in sales in 2006.
``We are always sorry to see a company leave,'' said Glenn Phillips, public affairs officer with the New Jersey Economic Development Authority.
In 1978, Fabricated Plastics worked with the agency for a $1.6 million bond financing when it built its original facility, Phillips said.
The company also had a loan for $400,000 in 2002, which was paid back this year.