EUCLID, OHIO (Aug. 11, 1:05 p.m. ET) — Plastics scrap recycler InterGroup International Ltd. has purchased the recycling assets of the former Solo Cup Co. factory in Springfield, Mo.
According to Euclid-based InterGroup, the deal includes two six-inch repelletizing lines as well as upstream and downstream equipment.
CEO Neil Gloger said the equipment will give his firm 15 recycling lines, and continue a steady growth pace, which had slowed somewhat during the economic downturn.
Lake Forest, Ill.-based Solo had closed the Missouri plant as part of a restructuring that was announced during the summer of 2010.
Bob, Baker, InterGroup's head of engineering and maintenance, said Solo has maintained the equipment, allowing his firm to bring most of it on line without major rebuilds or delays.
“Though we have been running 24/7 since the beginning of the year we still find ourselves outsourcing a substantial portion of our monthly volume to toll processors,” InterGroup operations manager Scott Dittrich said in a news release. “We look forward to bringing [the new machinery] on line during the third quarter of this year, which should help with capacity and quality issues.”
InterGroup in 2010 moved its operations about 75 miles from Warren, Ohio, to the 130,000-square-foot Euclid site. The firm maintains a warehouse in Warren, and is looking to acquire additional warehouse and manufacturing space in Euclid by the end of 2011, Gloger said.
The firm operates Erema TVE, Vecoplan and Cumberland recycling equipment including shredders and granulators, a Cal-Sierra densifier, Milacron twin-screw extruders, and laboratory equipment.
The firm handles polyethylene, polypropylene, nylon and other engineering resins and a small amount of PVC.
The company, which claims to move than 7 million pounds of scrap monthly, sells to compounders, processors and the export market.
InterGroup employs about 70, Gloger said. Its 2010 sales were $7.4 million and are expected to be about $19 million to $20 million in 2011.
The firm checked in at No. 239 in Inc. magazine's 2010 ranking of the fastest-growing companies in the United States, and will be included in the list the year, although its position is unknown, Gloger said.