Michelex Corp.'s plastics division plans to reopen its Massena, N.Y., facility in early 2009 to make ``green'' packaging.
The Massena-based firm will use biodegradable plastics and ``foster the development of a `green' approach to our manufacturing process'' for DVD and CD packaging, said Thomas Gramuglia, Michelex president and chief executive officer, in a Sept. 17 news release.
Michelex said it has arranged for a $4.48 million incentives package including a $1 million New York Job Development Authority loan and, potentially, wage and investment tax credits worth up to $2.63 million.
The loan for property and equipment is contingent on Michelex creating 175 new jobs within three years. Michelex expects to reopen with many workers from its previous operations.
In March, Plastics News reported that Source Bio-Plastics Inc., a subsidiary of Kore Holdings Inc. in Silver Spring, Md., was going to buy Michelex, but Michelex did not mention Source Bio-Plastics in the recent announcement. Michelex officials did not respond to questions.
Separately, International Consolidated Cos. Inc. of Sarasota, Fla., said Sept. 18 it was terminating a plan to acquire the assets of Source Bio-Plastics after issuing a letter of intent for that purpose on Aug. 22.
ICCI said Source Bio-Plastics had land, equipment and facilities with a value of more than $5 million and that Source had capability to make soy- and wood-based resins that might contain nanoparticles.
After years of recurring losses, ICCI reported profit of $55,000 on sales of $1.8 million for the second quarter ended June 30. ICCI was formerly Sign Media Systems Inc.