RTP Co. is expanding its plastic products business by purchasing a film operation in Dupo, Ill., from Omnova Solutions Inc.
No purchase price was disclosed in the deal, which will give Winona, Minn.-based RTP the use of a 40,000-square-foot plant making medical and industrial film.
RTP, an engineering plastics compounder, entered the film market when it bought Wiman Corp. of Sauk Rapids, Minn., in late 2006.
All employees and equipment are expected to be retained in Dupo, RTP officials said in a Jan. 26 news release. Fairlawn, Ohio-based materials and laminates supplier Omnova will be a customer of the plant.
``We continue to be delighted with Wiman's success and are happy to make this investment in its future,'' RTP President and Chief Executive Officer Hugh Miller said in the release. ``We foresee continued growth in demand for customized film and roll stock products.''
Peter Ploumidis, president of RTP's film and sheet division, said the dealwill allow RTP to produce film as thin as 1 mil much thinner than its current 5-mil limit.
``This is going to open up a lot of opportunities for us in a lot of different markets,'' Ploumidis said in a Jan. 28 phone interview.
Films made at the Dupo site which is in the St. Louis metro area are based on PVC, polyethylene, polypropylene and polyester. They are used in vascular therapy devices, blood-pressure cuffs and decorative surfaces including wallpaper.
The site operates three extrusion lines and employs five although Ploumidis said the employee count should double by the end of the year. In a Jan. 26 news release from Omnova, Chairman and Chief Executive Officer Kevin McMullen said that ``the sale of these nonstrategic assets provides greater focus'' to the firm's decorative products business and will reduce Omnova's fixed costs.
In addition to film, RTP began commercial sheet production in Winona in 2004. The firm employs more than 600 worldwide and has annual sales above $250 million.
Publicly held Omnova posted a loss of about $2 million in 2008, even though its sales rose almost 17 percent to $869 million.