North America's largest rotational molder, Lincoln, Neb.-based Tank Holding Corp., will close a plant in Gardena, Calif., when the existing lease expires next year and move the equipment and jobs to two other nearby facilities.
The plant houses the operations of the former Rotational Molding Inc. (RMI), which Tank Holding announced it had bought on Jan. 4, 2021, as its 11th acquisition in two years.
About 62 temporary and full-time employees at the facility produce bulk laundry and linen carts, storage tanks, and bins and containers for material handling, refuse and recycling.
Tank Holding officials negotiated a lease extension for the Gardena plant, but that only goes through March 2022, President and CEO Gregory Wade said in a phone interview.
"We've been planning along the way, knowing the lease was set to expire," Wade said.
"We're moving that business into two other facilities we have in the region, including Compton and Chino, Calif. We have offered employees the opportunity to also work at one of those facilities."
With $440 million in estimated annual sales, Tank Holding ranks first among North American rotomolders, according to Plastics News' latest ranking. The company manufactures mostly polyethylene tank and container products, and also proprietary products, such as intermediate bulk containers, insulated material handling bins and specialty pallets.
The three Tank Holding facilities in Southern California are all within about 45 miles of each other.
Wade said the response from employees regarding transferring to another Tank Holding facility in the region has been very positive.
"We have a very talented and hard-working group of employees in the region, and we'd certainly like to retain them through this relocation of business," he added.