One of North America's largest film and sheet makers is buying a recycling company in Tennessee with plans to expand operations.
Sigma Plastics Group's deal for the assets of InSource Materials LLC of Henry, Tenn., includes equipment, a 112,000-square-foot building and 14 acres. The facility handles both post-consumer and post-industrial plastics.
Plans already are under way to expand the location, which is being renamed Sigma Renew 360.
"The acquisition of InSource Materials allows Sigma Plastics to show our commitment to sustainable packaging and a circular economy by having a dedicated PCR recycling location to meet the growing demand for PCR content in our films," said Sigma CEO Mark Teo in a statement. "In addition, the location will serve to enhance our PIR capacity and add flexibility to process our waste films generated from other Sigma Plastics locations."
InSource Materials shreds, grinds and pelletizes and provides pelletizing and shredding toll services to others.
InSource Materials owner Irvin Payne said in a statement that the sale is a "very positive acquisition for the city of Henry as well as Henry County."
"Sigma is a leading player in their industry and the acquisition and future expansion of their business will help the city and county grow as well as provide secure jobs," Payne said. "This is good news for everyone."
Sigma Plastics, based in Pompano Beach, Fla., has 45 manufacturing sites with a capacity to handle more than 2 billion pounds of resin each year.
The company makes products such as industrial, agricultural, commercial, hygiene and stretch films as well as retail, produce, garment and food bags. Sigma Plastics also manufactures industrial trash liners.
Sigma Plastics ranked No. 4 on the most recent Plastics News list of North America's largest film and sheet makers with $2.6 billion in annual sales in 2022.
The new Sigma Renew 360 site is expected to employ 40 workers after the upcoming expansion.