A Columbus, Ohio-based packaging and industrial films maker is expanding its manufacturing at home and overseas, while closing two distribution sites.
The moves by Plastic Suppliers Inc. come as the company puts more emphasis on the products the firm makes while still keeping a hand in the distribution of other firms' materials.
PSI said distribution sites in Dallas and Fullerton, Calif., will close by the end of January. The move eliminates about 12 positions, but employment is expected to increase in Ohio.
The company is upgrading and expanding manufacturing operations in Columbus and Ghent, Belgium. The Belgium facility is operated through subsidiary Sidaplax VOF.
Distribution of other firms' products will continue out of Columbus, and PSI worked with existing customers previously serviced out of Texas and California to find new suppliers if needed, Marketing Manager Jonathan Stiffler said Jan. 3.
"PSI has an increasing business need to better align our assets with marketplace trends and customer demand," CEO George Thomas said in a statement. "To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines — in the right locations — to best meet the current and future needs of our customers."
Stiffler said the move is "all about the growth of the company" in wanting to place an emphasis its own manufactured products. Those products include the EarthFirst polylactic acid-based line, described as thin-gauge compostable bio-based polyester films.
The company also makes the PolyFlex brand of oriented polystyrene films used for applications including shrink labels, envelope and folding carton windows, tamper-evident bands and labels. Distribution includes lidding films, PET, synthetic papers and polypropylene substrates. Markets include food, beverage, health and beauty, chemicals and office products.
Stiffler emphasized the firm will continue to be in the distribution business out of the Columbus facility.
"Business decisions impacting the livelihood of our employees are extremely difficult," Thomas said in a statement. "This move reflects a disciplined effort to enhance operational efficiencies and directly supports our sustainable growth activities."
PSI dates to 1949 when the company was founded by Jack Tatem in New Jersey. Tatem's family still owns a majority of the company.
Those who lost their jobs in the restructuring were offered severance packages and help finding new employment, Stiffler said.
Changes being made by the company will help PSI extend its product lines into new applications, the marketing manager said.
"We're very excited about the opportunities just because we know we are going to bring products that are completely revolutionary to the market. We want to push sealant films and just plastic sheeting in general to be the best that it can be both for the planet and for the products that are being made," he said.
PSI said it serves customers in 44 countries on five continents.