Berry may buy Rexam closures business
LONDON — Berry Plastics Corp. may be on the verge of acquiring Rexam plc's closures unit for £200 million ($323 million).
The London business newspaper City A.M. reported June 17 that London-based Rexam is in exclusive negotiations with Evansville, Ind.-based Berry to sell the lids business it bought in 2007 as part of its $1.8 billion acquisition of Owens Illinois Inc.'s plastics assets.
While he would not verify the buyer, Greg Brooke, Rexam's vice president of U.S. corporate affairs, confirmed via a June 17 telephone call and email that a sale is pending. “This step will strengthen our business going forward and enable us to further focus on cost, capital returns and growth markets,” he said.
Officials at Berry were unavailable for comment.
Rexam officials confirmed in December that they were in talks to sell the closures unit. At its annual meeting in May, the firm said that for accounting purposes it was reclassifying the largely North American closures unit as “discontinued operations.”
Centrex to spend $9M on new S.C. plant
FINDLAY, OHIO — Plastics injection molder and extruder Centrex Plastics LLC will invest about $9 million over three to five years to open its second plant.
The site, near York, S.C., is in a region of the Southeast that's seeing big growth, and many of Centrex's customers were anxious to see the Findlay-based molder expand into the area, President Terry Reinhart said in a June 17 telephone interview.
Reinhart, along with a partner, bought the shuttered Centrex Corp. in 2003 to develop Centrex Plastics LLC and has worked steadily to build its production and sales each year, he said. Centrex employs about 220 in Findlay and expects to ramp up to 60-80 workers. About half of its sales are into the auto and heavy-truck industries, with the rest in custom commercial products.
Reinhart said Centrex is trying to finalize plans for yet-another site, to continue its growth.
Loose expanding into new Michigan HQ
BEAVERTON, MICH. — Beaverton-based sheet extruder Loose Plastics Inc. is moving to a larger facility in nearby Gladwin, Mich., where it will add machinery and capacity.
Loose Plastics will expand from its 24,000-square-foot site in Beaverton to 120,000 square feet in Gladwin, and add 25 million pounds of annual capacity to its current 50 million pounds. The company will operate a total of 12 extrusion lines.
Four years ago, Loose Plastics had only four lines, Vice President Joshua Loose said June 14 by phone. The firm bought more production equipment during an auction at a former Spartech Corp. plant near Atlanta, he said.
The firm, which serves a variety of end markets, is adding pelletizing and shredding equipment in Gladwin, to boost recycling.
By year's end, it will have all operations at Gladwin, and will have increased its workforce of 66 to about 100, Loose said.
Magna to consolidate Continental sites
AURORA, ONTARIO — Magna International Inc. has completed its acquisition of the former Continental Plastics Co. and is investing $14.4 million to consolidate that firm's five operations.
Magna will close three of the five acquired Continental plants — located in the Detroit suburbs of Fraser and Chesterfield Township, Mich., and in Alpharetta, Ga. — and relocate interior trim operations from those sites to Continental's Benzonia, Mich., and St. Clair, Mich., plants, which will become part of Aurora-based Magna's Exteriors and Interiors USA Inc. unit.
Magna also will transfer some production to its own Howell, Mich., plant — a move that will bring 333 new jobs to that site, a company spokeswoman said. The firm will receive a tax credit of nearly $1.5 million from the Michigan Economic Growth Authority over three years to support its increase in employment.
Magna completed its acquisition of Fraser-based Continental last month for an undisclosed sum.
Canada Post suspends mail operations
OTTAWA, ONTARIO — Following 12 days of strikes by the Canadian Union of Postal Workers, distribution operations are suspended across all parts of Canada, the Ottawa-based Canada Post announced June 14.
U.S.-based firms that have offices in Canada should be aware that there may be a delay in the delivery of this publication to their subscribers in Canada.