New firm launches from bankrupt T&S
TORONTO — The former president of defunct T&S Blowmoulding Inc. has enlisted partners to start another business, Unique Blowmoulding Inc.
T&S of Toronto went bankrupt May 12. Former President Don Seaton said the main reason was the value of the U.S. dollar. T&S did 60-70 percent of its business in the United States and when its dollar sank in value relative to Canada's dollar, the firm's margins were squeezed.
``When we tried to raise prices, [U.S. customers] left,'' Seaton said by telephone from Unique's office in Concord, Ontario.
Unique will extrusion blow mold high density polyethylene, polypropylene and PVC when it begins operating the week of May 26. Seaton said Unique will avoid making PET water bottles because of possible difficulties with environmental pressures. The company will do some business in the U.S. but will not be as reliant on exports as T&S, Seaton said. Unique also will strive to keep overhead low. Seaton and three partners bought equipment from T&S' secured creditor to start up Unique.
T&S had assets of C$495,000 (US$500,000) and liabilities of about C$1.5 million (US$1.52 million) when it voluntarily filed for bankruptcy, said David Filice, vice president of Fuller Landau Group Inc., the Toronto-based trustee for the bankruptcy. The major secured creditor, a bank, was paid off prior to the bankruptcy. Fuller Landau will hold the first creditors meeting June 2 in Toronto.
T&S had sales of US$12.8 million for the year ended May 31, 2007. It had 23 blow molding lines and had employed as many as 130.
JCI building Georgia plant to serve Kia
Glendale, Wis. Auto supplier Johnson Controls Inc. will build a 130,000-square-foot plant in West Point, Ga., to make door panels and seats for Kia Motors Corp.'s new plant there.
Glendale-based JCI, whose automotive unit is based in Plymouth, Mich., did not provide any details or cost for the proposed Georgia plant, but said it expects to employ 310 there once production launches in 2009.
Kia's $1.2 billion West Point plant will be the first in North America for the Seoul, South Korea-based automaker. It expects to turn out as many as 300,000 vehicles per year at the site.
JCI will make parts for a future sports utility vehicle for Kia.
Groups want Fairfax bag ban on ballot
FAIRFAX, CALIF. Two environmental groups that had persuaded the city of Fairfax to pursue its recently abandoned plastic shopping bag ban intend to circulate a petition to require businesses in the city to use recyclable paper or reusable bags for customer carryout bags.
Green Sangha, based in Oakland, Calif., and Sustainable Fairfax, in Fairfax, filed their intent to circulate a petition to get the issue on the November ballot. The city had approved a ban earlier this year, but made it voluntary when a California court in April struck down a plastic bag ban in Oakland, citing the need for a full environmental impact review. Unlike legislation, ballot initiatives in California do not require environmental reviews.
Malibu, Calif., became the second U.S. city to enact a plastic bag May 12, joining San Francisco, whose ban went into effect last Nov. 20. The Malibu ban, after a second vote May 27, is scheduled to go into effect Dec. 28.
Milacron moving delisted stock to OTC
CINCINNATI Milacron Inc. will drop off the New York Stock Exchange May 27, because the plastics machinery maker's market capitalization is below NYSE's minimum level.
Milacron officials announced May 20 that the Cincinnati-based firm's stock will be traded over the counter on the Pink Sheets, electronic quotation service. Milacron also is taking steps to get quoted on the OTC Bulletin Board, the firm said.
NYSE took the action in view of Milacron's move to over-the-counter trading. NYSE said Milacron does not meet the exchange's continued-listing standard for average global market capitalization of not less than $75 million over a consecutive 30-day trading period, and total stockholders' equity of not less than $75 million.
Milacron faced similar problems with an ongoing NYSE listing in fall 2006. Shareholders approved a 1-for-10 reverse stock split last year, designed to push the stock price above $1.
Milacron shares closed at $1.90 on May 22.