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December 01, 2020 10:20 AM

Arkansas molder eyes ‘national scale' size with expansion, acquisition

Sarah Kominek
Sarah Kominek
Staff Reporter
Plastics News Staff
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    Polyethylene Containers Inc.
    Arkansas-based molder Polyethylene Containers Inc. makes pails, drums and other bulk containers.

    Polyethylene Containers Inc. is purchasing Rehrig Pacific's injection molded pail portfolio in a multimillion-dollar deal expected to close Jan. 1, with a full "rollout" of the brand in March.

    The acquisition is expected to add about 40-50 new jobs to PCI's hometown of El Dorado, Ark., General Manager Alan Tyson told Plastics News, where it recently purchased a 246,000-square-foot facility to make room for more blow molding and injection molding.

    The multimillion-dollar facility is expected to be operational by March 31, according to a Nov. 29 news release.

    PCI will add infrastructure, a minimum of seven new large-tonnage machines, automation equipment and ancillary production and handling to the new facility, Tyson said.

    "As business changes, so must we," Will Rehrig, president and owner of RP, said in a Dec. 4 news release. "We searched for a family owned business who focuses on product quality and customer service to continue to grow this line of products. We are excited to partner with PCI to transition this business at the same level of service Rehrig Pacific customers are accustomed."

    "2021 is going to be a big year for the PCI family," CEO Walter Tyson said in the news release. "The timing is perfect for us to pursue an opportunity like this and the fit of RP's pail portfolio into ours is nothing short of exciting.

    "In an industry that has been rife with consolidation by private equity and large conglomerates in recent years, this acquisition strengthens the underdog for years to come to deliver the top products in the market by a company who cares about its customers" Tyson added.

    PCI declined to comment on the total amount of the investment in its new facility and the terms of the pail portfolio acquisition. The company is No. 113 in Plastics News' ranking of blow molders.

    PCI purchased a shuttered molding plant that produced rubber automotive parts and will repurpose it to manufacture high density polyethylene packaging, Tyson said.

    "We have been blessed to experience substantial growth over the past five years and we need more space to grow," he said. "This solution will propel PCI onto a national scale by more than tripling the space of our flagship location and leads the way for continued growth, both through organic opportunity and acquisition."

    "PCI will partner with Rehrig Pacific throughout the transition to fully meet all outstanding requirements for existing Rehrig Pacific customers," the release said. No other Rehrig Pacific products or divisions will be impacted by the sale.

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