A vacant Syroco resin furniture factory will get new life as a warehouse and distribution center for Tessy Plastics Corp.
The former Syroco plant is in Van Buren, N.Y., about 20 miles north of Tessy headquarters in Elbridge, N.Y. Both towns are near Syracuse.
Tessy needs the extra warehouse space to free up room for more injection molding presses in Elbridge, where the company is expanding in consumer and medical products, according to President and CEO Roland Beck.
Tessy is buying 270,000 square feet of the building, the part that Syroco had used as a warehouse, Beck said in a telephone interview May 27. He said the deal should be finalized in the next couple of weeks.
He said Tessy is paying $3.2 million for the building.
Beck said Tessy is not buying the manufacturing part of the building, which measures about 115,000 square feet.
Syroco Inc. was one of the makers of injection molded outdoor furniture. Facing volatile resin prices, low-priced imported resin chairs and dealing with big-box retailers, Syroco was struggling when it was purchased in 2004 by Puerto Rican PVC pipe extruder Vassallo Industries Inc. Vassallo invested more than $10 million into the business, but it ended up closing in mid-2007.
The company liquidated operations. Beck said the building no longer houses any injection molding machines from the Syroco days.
Tessy Plastics has been renting some warehouse space in the Syroco building, and then officials decided to buy it.
Tessy is finishing up construction of a 90,000-square-foot plant in Elbridge to injection mold packaging for Old Spice deodorant, Beck said, and the building should be completed by the end of July. Tessy is molding the deodorant packaging, then making the finished product on automated assembly lines.
The $9 million factory Tessy's third in Elbridge will focus on molding for consumer products. Beck said the company is installing nine resin silos to serve the plant.
We emptied out some of our warehouse space at this plant, in order to have more production, Beck said.
Last year, Tessy invested $4 million to build a 40,000-square-foot medical-molding expansion at its advanced manufacturing plant in Elbridge.
For now, Tessy plans to use the Syroco building as a warehouse and distribution center, employing only a few people. But Beck said officials could decide to manufacture there in the future. The building has rail access.
Tessy executives have requested state Empire Zone status for the operation. That could get Tessy tax breaks if it creates 50 jobs which Beck said could happen if Tessy would add molding to the former Syroco site.
Tessy won Plastics News' Processor of the Year Award in 2000.
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