PN chart corrects melamine, urea prices
AKRON, OHIO — Plastics News is correcting prices for melamine and urea molding compounds on this week's resin pricing chart.
The corrections are being made to reflect higher feedstock prices for both materials. In urea, prices for white and ivory compounds now are higher than those of black and brown compounds because of higher prices for titanium dioxide additives, sources said.
Demand for melamine compounds grew about 5 percent in North America last year, with urea demand increasing by about 3 percent, according to market watchers. Housewares and restaurant supplies are two large end markets for melamine, while electrical parts such as wiring and circuit breakers account for a large share of urea demand.
ADS acquires Quality Culvert HDPE assets
HILLIARD, OHIO — Advanced Drainage Systems Inc. has purchased the plastic pipe manufacturing assets of Quality Culvert Inc.
Hilliard-based ADS announced March 12 that it has acquired Quality's high density polyethylene corrugated pipe assets for distribution to various ADS facilities.
Quality is based out of Astatula, Fla. The purchase did not include Quality's concrete pipe or structure assets, according to an ADS news release.
Privately held ADS did not disclose terms of the deal or other financial information. A company representative said the firm would have a better idea of how equipment will be distributed once the deal is final.
As previously reported, ADS is growing rapidly, with a new production facility in Clifford, Mich., set to open in April. In 2011, the firm opened plants in Hampton, Iowa, and Buxton, N.D.
ADS is the world's largest producer of corrugated HDPE pipe, with 54 manufacturing plants and 24 distribution centers worldwide. Major markets for its corrugated pipe include agricultural drainage and infrastructure.
Plastics News estimates ADS' pipe, profile and tubing extrusion sales in North America were about $840 million in 2010.
The Quality purchase comes on top of a $10 million expansion that ADS announced last summer to expand capacity and improve delivery capabilities.
Graham Packaging closing Ohio plant
YORK, PA. — Graham Packaging Co. LP will close its Delta, Ohio, plant later this year.
The plant will permanently end production during the third quarter of 2012, between July 1 and Sept. 30, and lay off 55 hourly and 10 salaried workers, according to a WARN act notice filed with the state of Ohio March 14.
Overcapacity is forcing York-based Graham to consolidate plant operations, according to the notice.
Affected employees can apply for positions at other Graham plants; others will receive severance packages, the firm said.
Graham, North America's second-largest blow molder, according to Plastics News' data, did total sales of $2.5 billion in 2010. The firm employs about 6,700 at 75 plants in North America.
In June 2011, Reynolds Group Holdings Ltd. purchased Graham for $4.5 billion.
Huhtamäki to buy Chinese firm Josco
ESPOO, FINLAND — Packaging firm Huhtamäki Oyj will acquire Josco Holdings Ltd., a disposable packaging manufacturer based in Hong Kong, for 67 million euros ($88.3 million).
The debt-free transaction is scheduled to clear next month.
The acquisition will allow Huhtamäki to strengthen its operations in Asian and worldwide markets, according to a news release.
Josco is a privately owned company that employs about 1,350 at two manufacturing plants and two distribution centers in China and a Hong Kong sales office. It posted 2011 sales of about 70 million euros ($92.2 million), according to the release.
With the acquisition, Huhtamäki will have 12 manufacturing units, including seven flexible packaging plants, in Asia, and about 4,400 employees.
The company projects that 15 percent of its 2012 net sales will come from Asia.
Espoo-based Huhtamäki employs 12,700 at 59 plants in 31 countries. Its 2011 sales totaled 2 billion euros ($2.63 billion).
