Sigma Plastics Group is acquiring a stretch film maker in Georgia that had filed for bankruptcy court protection.
The deal for the Stalwart Plastics location in Midland, Ga., also known as Zummit Plastics, includes a 125,000-square-foot building, three cast film extrusion lines and 20 acres of land.
Zummit, Sigma said, "was being liquidated under a Chapter 7 bankruptcy" and operated in both Midland, and Phoenix, but this deal only includes the Georgia site.
"This new location in Georgia fills a geographical need for our stretch film division and demonstrates Sigma's commitment to help grow our customers' businesses by investing in assets that will help us lower our cost to service," Sigma CEO Mark Teo said in a statement.
The Georgia location becomes Sigma's eighth stretch film plant. Others are located in Riverside, Calif.; Tulsa, Okla.; Shelbyville, Ky.; Lyndhurst, N.J.; Belleville, Ontario; Karczew, Poland; and Bangkok.
"We have been looking for a sixth North American manufacturing location and Midland is the perfect fit. Once fully operational we will be in a great position to increase our already industry leading service levels with a full product offering," said Joe Graves, chief operating officer of Sigma Stretch Films, a division of the company.
Sigma, based in Pompano Beach, Fla., calls itself the largest privately owned film extrusion group in North America. The company has a total of 48 manufacturing sites producing a variety of films and bags. The company, with more than 5,000 employees, uses more than 2 billion pounds of resin each year.
It is No. 4 among film and sheet makers in North America according to Plastics News data with $2.6 billion in sales in the region.