Auto molder Craaytech in bankruptcy
PETERBOROUGH, ONTARIO Craaytech Painted Plastics Inc. of Peterborough has filed for bankruptcy Jan. 13.
The firm appointed Harris & Partners Inc. of Markham, Ontario, as trustee.
Craaytech mainly injection molded and painted interior auto parts for Detroit's Big Three automakers.
``There are problems in the auto industry,'' said Harris & Partners owner Jay Harris, in a telephone interview. The bankruptcy is Harris & Partners' third auto-related client in the past two months, the other two being metal processors.
Harris said although banks were involved, the current major secured creditor is an undisclosed private lender. He does not expect unsecured creditors will recover any money from Craaytech. Assets in the 45,000-square-foot plant probably will be sold at auction, according to Harris.
Craaytech, founded in 1981, also molded for furniture and business machine markets. The firm had as many as 143 employees in December but workers are now without jobs and the plant is closed.
The firm had QS-9000 and ISO 9001 certifications. Its 13 presses have clamping forces ranging from 30-720 tons.
Formed Fiber restructures, lowers debt
AUBURN, MAINE Auto supplier Formed Fiber Technologies Inc. has completed a financial restructuring that it says will allow it to meet existing fiscal commitments and invest in new vehicle launches.
Auburn-based Formed Fiber thermoforms large parts including trunk liners. It also has manufacturing in Sidney, Ohio, and Sumter, S.C. The slowdown in auto production has had a ``significant impact'' on the ability of auto suppliers to meet short-term and future expenses, the company noted in a Jan. 14 news release.
Working with advisers from Conway MacKenzie & Dunleavy Inc. and its CM&D Capital Advisors branch in Birmingham, Mich., the company was able to restructure and lower its debt.
Formed Fiber did not provide any restructuring details, but noted that it has ``vigorously'' addressed its cost structure for the past 18 months.
``It was necessary to take this action in order to position FFT as one of the viable suppliers in these recessionary times,'' said President and Chief Executive Officer Mark Bennett.
The slowdown is expected to continue at least for the next two months, but Formed Fiber is in position now to survive it, he said.
Creative Foam grows with wind turbines
FENTON, MICH. Creative Foam Corp. may be expanding into the West with a deal to make components for the growing wind turbine business.
Local news reports in Longmont, Colo., noted that Fenton-based Creative Foam is leasing 70,000 square feet of manufacturing space to make parts for wind turbines. Creative Foam already fabricates turbine parts along with cellular and noncellular foams for automotive seals and acoustic sound barriers.
The company has five sites in Michigan and manufacturing in Athens, Tenn., and Bremen, Ind. Company officials were not available for comment.
Compounder RTP adds ultraclean center
WINONA, MINN. RTP Co. has opened an ultraclean compounding center at its manufacturing site in Winona.
The center includes two extrusion lines and covers 3,300 square feet. Extrusion and post-extrusion work including cooling, pelletizing and packaging are conducted inside a climate-controlled environment with interlocks to limit access.
The new area opened earlier this month, said global marketing and business development director Gregg Newby, in a recent phone interview. Another two extrusion lines can be added, if needed.
Newby called the center ``a controlled production environment offering significant improvements.''
The operation can process almost any RTP compound, including nylon, polycarbonate and other engineering resins. Products made through ultraclean production initially will be used in medical and electronics markets, Newby said.
Winona-based RTP has annual sales of about $275 million and employs 600 at eight locations worldwide.