Longview Economic Development Corp. has recruited another plastics company to Longview, Texas, to replace a company that reportedly has shut down its plant there.
The economic development agency said Aug. 24 that Dallas Plastics Corp. of Mesquite, Texas, a manufacturer of specialty and converter polyethylene films, plans to purchase a 55,000-square-foot building and begin installing blown film extrusion equipment in the fall.
In an Aug. 29 telephone call, Mark Thoreson, president of Dallas Plastics, confirmed that the company is locating some manufacturing in Longview. He would not comment further.
Manufacturing at the plant is slated to begin during the first quarter of 2012, according to the economic development agency. During the next 10 years, Dallas Plastics will invest about $31.6 million in payroll, benefits and capital. The company received a $500,000 incentive package payable over five years to aid the project.
The Longview News-Journal reported Aug. 25 that the plant formerly was owned by Exopack Holding Corp. of Spartanburg, S.C., which was consolidating its former Texas operations in South Carolina.
Exopack officials did not return Plastics News' requests for more information.
On Aug. 4, Exopack CEO Jack Knott resigned to become managing director of buyout firm Sun Capital Partners Inc. of Boca Raton, Fla., which owns Exopack. Tom Vale, president and chief operating officer of Exopack, is serving as interim CEO.
Dallas Plastics' investment in Longview will add up to $5.8 million and 65 new jobs over the next six years, according to the newspaper.
Dallas Plastics was founded in 1989, according to its website. It has plants in Mesquite and Wentzville, Mo.
The company makes specialty films such as narrow-width layflat tubing, critical-tolerance films, and non-scratch low density polyethylene and high-tensile draw tape for drawstring bags.
Dallas Plastics supplies the food, medical, agricultural, retail, automotive, aircraft and electronics markets.
In related Exopack news, the firm is the process of completing a yearlong, $13 million investment in new equipment for its Spartanburg and Tomah, Wis., plants.
The centerpiece of the Spartanburg renovation is a new Starlinger woven polypropylene converting cell.
According to a Sept. 1 news release from Exopack, the equipment will allow it to manufacture and distribute domestically manufactured Rave PP sewn and Slider Zipper bags for a variety of end-use markets such as pet food, lawn and garden, seed and other agricultural products.
Exopack also invested in an expansion to Spartanburg's existing Rave composite bag manufacturing operations, as well as its printing capabilities. The bag line is being offered with a Slider Zipper easy-open/close feature. A new Comexi 10-color, gearless quick-change printing press will be installed by October, according to the release.
At the Tomah plant, investments have been made to enhance the company's Rave and Enduro-brand pre-made plastic bag-making capabilities.
A Totani SG8 flat-bottom Quad Seal machine, a B&B PET/PE Quad PTC machine and a B&B PE Quad and Edge Seal machine will all be operational by October, to help Exopack serve pet food and lawn and garden customers, the company said.
“Our recent investments will allow for the development of new sustainable package formats and manufacturing processes, support customer marketing requirements and provide a production platform capable of supporting future technological innovations,” Scott Ross, vice president and general manager for Exopack's pet food and specialty products business unit, said in the release.
For the second quarter of 2011, Exopack reported losses of $15.3 million on sales of $219.8 million, compared with losses of $2 million on sales of $179.6 million for the year-ago period.
Most of the second-quarter losses were due to paying down debt under a massive recapitalization plan launched in the spring, Exopack spokesman Chris Swalm said Sept. 1.
For full-year 2010, Exopack reported losses of $2 million on sales of $785 million, compared with losses of $5.9 million on sales of $673.7 million in 2009.