Nypro Inc. has sold its injection molding plant in Nagyigmand, Hungary, to privately owned plastics packaging firm Plasticos Castella SA of Spain. But Nypro will retain a minority stake in the company being formed to operate the plant.
They will get better utilization out of the plant, said Nypro spokesman Al Cotton on Dec. 3. They are right there, they have a need to expand and that is the main nature of their business.
The sale of the plant comes about four months after a wire-service story said the plant would be closed at the end of August. At that time, Nypro had said it was exploring several options to keep the plant open.
Cotton said Nypro will work with Plasticos Castella to maintain production of the Nypro packaging products made at that plant during the transition. At some point, the plant owners could possibly be making those products for Clinton, Mass.-based Nypro.
The new company, a unit of Plasticos Castella, will be called PlastiCast Hungary Kft.
The 53,800-square-foot plant, built about 10 years ago as a consumer electronics plant, was converted primarily to a plastic packaging plant because manu- facturing of the plant's original products shifted almost exclusively to Asia, Cotton said.
Demand has gone down in Europe for consumer electronics, packaging and health-care products, Cotton had said in August.
Cotton said employment at the plant, once several hundred, is less than 100.
The Nagyigmand plant will be Plasticos Castella's first outside of Spain. The company said it will immediately add injection presses and capacity.
This strategic acquisition will contribute to our long-term expansion plan to support global customer needs and better position Plasticast in the packaging industry, said Emilio Castella, a director of Plasticos Castella.
We are excited about the opportunity to partner with Plasticos Castella, said Paul Kayser, group president of Nypro Packaging. I look forward to continuing to offer the Hungary location as a viable solution for our global packaging customers.
Plasticos Castella, based in Tortosa, Spain, builds injection molds and molds thermoplastic packaging, largely for the food, home and personal-care markets.