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INDUSTRY R EVIEW: PLASTIC S
Tips for Siting
New Plastics Plants
Globally and locally, resources exist that are designed to
make the task of siting a new plastics facility less daunting. Surprisingly few
industry players take advantage of them, according to a recent survey.
by G. DAVID MOORE
A good gauge for measuring growth
in the industrial sector is to take
the pulse of the plastics industry,
Much of the activity involving new
plant activity surrounds the production
of plastic products built to replace those
for the production of PTA (purified
terephthalic acid), used in production
of PET.
which is central to the manufacture, made of other, more traditional materi- In Canada, much of the growth in
distribution, and regeneration of pro- als. Husky Injection Molding Systems the plastics industry can be found in
ducts in numerous industries. Signs of of Bolton, Ontario, for example, plans the western province of Alberta, but
growth in the plastics industry abound to build a 65,000-sq.-ft. (6,040-sq.-m.) growth in the industrial regions of
throughout the United States, where research and development center in Ontario and Quebec remains brisk. AT
organizations ranging from small, plas- suburban Detroit in which Chrysler Plastics is expanding its plastics plant
tic-converting businesses to heavy in- Corp. will design and test plastic car in Edmonton, Alberta, by 70 percent
dustrial plastic suppliers are booming. bodies, which currently are made of capacity to 145,000 tons annually. The
Growth in the other industrialized steel. If successful, the project could expansion will cost approximately
nations competing in the plastics are- culminate in a line of lighter, less expen- US$97 million and will add 40 new jobs
nas is robust, too, as technology and an sive vehicles. at the plant.
increasingly borderless marketplace In Japan, Seishin Enterprise began In St. Albert, Alberta, on the outskirts
lower the barriers to entry. operating an experimental plant in June of Edmonton, Pro-Western Plastics,
Like facilities in any industrial sec- that uses pellets from recycled PET Ltd., is building a 23,000-sq.-ft. (2,126-
tor, plastics plants bring into question (polyethylene terephthalate) bottles for sq.m.) addition to a 100,000 sq.-ft.
environmental, labor, waste disposal the production of powder coatings. And (9,290-sq.-m.) plant. Pro-Western has
and other thorny issues. The key to Omni Corp., Hammond, Ind., is now installed three Husky injection presses
seeing one’s way clearly to an opera- marketing a faucet made of high-impact at the facility this year. And Phillips
tions success story in any region is to engineered plastic designed to elimi- Petroleum Co. reportedly is consider-
exploit the development expertise res- nate potential exposure to lead. Omni is ing an Alberta site for a new polyethyl-
ident in state, local and utility agencies. a producer of brass water filtration sys- ene and ethylene production plant that
Making one’s concerns known to the tems for consumers. Overseas, India’s would open in or around 2003.
proper people is half the battle, and it’s Baroda Rayon plans to modify a nylon “Plastics is growing, because practi-
amazing to see how few organizations, plant to enable the company to develop cally every other industry uses plas-
at least in the plastics industry, actually engineering plastics. tics,” says Kim Keiper, business man-
take advantage of key resources at Elsewhere, Akron, Ohio-based Al- ager at the Ohio Plastics Processors
their disposal. side, Inc., began construction in May on Assoc., the only such state association
Some of the issues surrounding a $12 million, 120,000-sq.-ft. (11,150- of its kind, she maintains. “Part of its
siting a new plastics facility in the sq.-m.) vinyl siding manufacturing plant popularity is the fact that it’s a recy-
United States are outlined in case stud- in Freeport, Texas. The plant will clable material.”
ies in this article; by coincidence, the employ about 100 people when it opens Keiper says her group represents the
situations take place in the southeastern at year end. plastics industry before legislative com-
US. But examples of new and expand- In June, Eastman Chemical Co., mittees on the state and national levels
ing plastics facilities facing similar and Kingsport, Tenn., opened two plants in and works with the Ohio Environmen-
more complex site issues elsewhere Rotterdam - a 130,000-metric-ton PET tal Protection Agency on emission con-
abound. plant and a 290,000-metric-ton plant trol issues affecting plastics producers.
Reading the Numbers The Top 20 U.S. Plastics Facilities, 1995 to Present
According to Conway Data’s propri-
etary New Plant database, 1,100 plastics INVESTMENT MILLIONS OF U.S. DOLLARS
1. ARCO: Carson,Calif.;plastic products, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
companies invested more than $1 mil- 1. Atlantic Richfield Co.: Carson,Calif.;polypropylene, new . . . . . . . . . . . . . . . . . . . . . . . . . .300
lion each, in either an expansion or a 1. Hoechst Diafoil: Greer, S.C.;polyester film,expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
new plant, from 1994 through 1997. 4. Eastman Chemical: Calhoun Cnty., S.C.;plastic bottle materials, new . . . . . . . . . . . . . . . . .200
4. Marathon Oil Co./Epsilon Prod.: Garyville, La.;plastics, new . . . . . . . . . . . . . . . . . . . . . .200
That’s 1,100 site location decisions, and 6. Rubicon: Geismar, La.;plastics, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174
only some of those decisions involved 7. General Electric: Montgomery, Ala.;plastics, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . .125
consulting third party providers of loca- 8. Wellman: Johnsonville, S.C.;plastics recycling,expansion . . . . . . . . . . . . . . . . . . . . . . . . . . .100
tion expertise. A Conway Data survey of 9. Orion Paint & Plastics: Southfield, Mich.;mold and paint plastic facia for products, new . . . .84
10. ICI Films: Hopewell, Va.;polyester films, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
plastics industry executives who had 10. Norplas Inc.: Northwood,Ohio;plastic auto bumpers, new . . . . . . . . . . . . . . . . . . . . . . . . . .80
recently made investment decisions 12. Bayer Group: Orange, Texas;synthetic rubber, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
reveals that only 17 percent had help 13. Rexene Corp.: Odessa, Texas;flexible polyolefins, expansion . . . . . . . . . . . . . . . . . . . . . . . . .60
with analysis, 43 percent had help with 13. Toto USA: Morrow, Ga.;toilets, bathroom fixtures, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
13. Vifan Canada: Morristown, Tenn.;polypropylene film,new . . . . . . . . . . . . . . . . . . . . . . . . . . .60
permits, 23 percent with financing, and 16. Euro United Corp.: Buffalo, N.Y.;plastic injection,new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
50 percent with incentives. 17. Sound Alliance: Grand Rapids, Mich.;plastic acoustic systems, new . . . . . . . . . . . . . . . . . . . .50
Many small or startup plastic con- 17. Toray Plastics of America: North Kingstown,R.I.;plastics, expansion . . . . . . . . . . . . . . . . . .50
17. Toray Plastics: Warren Cnty., Va.;foam extrusion,new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
verters don’t have the resources 17. W.R.Grace & Co.: Seneca, S.C.;packaging film for fresh cut vegetables, new . . . . . . . . . . . . .50
to research the market, determine
the distribution and transportation EMPLOYMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .EMPLOY-
costs, and effectively evaluate the labor EES
1. N-K Manufacturing Technologies: Allendale, Mich.; injection molding plastic parts, new . . .540
force for multiple communities. These 1. SWI Mitigation Services: Casper, Wyo.;interlocking styrofoam panels, new . . . . . . . . . . . . .540
services are readily available through 3. Nikken: Irvine, Calif.;health and nutrition products, new . . . . . . . . . . . . . . . . . . . . . . . . . . . .500
economic development agencies in 4. Sealed Air Corp.: Madera,Calif.;foam products, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .450
most states, yet the majority of survey 5. General Foam Plastics Corp.: Virginia Beach, Va.; plastic decorative goods, new . . . . . . . . .400
5. Rubbermaid: Columbia, S.C.;toys, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .400
respondents did not avail themselves of 5. Silverline: Lansing, Ill.;vinyl windows and doors, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .400
them. What can you do to be sure you 5. Ultra Pac: San Benito Cnty.,Calif.;plastic containers, new . . . . . . . . . . . . . . . . . . . . . . . . . .400
are getting the help you want? 9. Crown Cork & Seal: Philadelphia, Pa.;metal and plastic containers, new . . . . . . . . . . . . . . .390
10. Standex International Corp.: Pontotoc,Miss.; Pepsi commercial coolers, expansion . . . . . . .380
Recognizing that plastic converting
11. Intesys Technologies: Gilbert,Ariz.;injection molded plastic parts, expansion . . . . . . . . . . . .350
is an ideal industry for communities 11. Venture Packaging: Anderson, S.C.;food packaging,new . . . . . . . . . . . . . . . . . . . . . . . . . .350
looking to expand their manufacturing 13. Hayward Pool Products: Kings Mountain, N.C.; swimming pool covers, expansion . . . . . . . .346
base is a first step. Why is plastic con- 14. Gatsby Spas: Madisonville, Ky.;portable spas, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .330
15. H.J. Heinz Pet Products: El Paso, Texas;plastic dog bones, expansion . . . . . . . . . . . . . . . . .320
verting attractive to economic develop- 16. Frima: Cadiz,Ohio;plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
ers? Turning pellets into product is an 16. H.P. Pelzer Automotive System: Port Huron, Mich.; auto sound insulation and interior trim parts, new .300
ideal manufacturing industry for almost 16. Plastech Corp.: Amery, Wis.;molded plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
any location. 16. Polar Plastics: Mooresville, N.C.;plastic injection molding and extrusion,new . . . . . . . . . . . .300
16. Special Plastic Products: Pontiac,Mich.;plastic products for automobiles, expansion . . . . . .300
Jobs in plastic converting have con- 16. Texas Jacobson: New Braunfels, Texas;injection molding,expansion . . . . . . . . . . . . . . . . . .300
tinued to grow at approximately 3 per- 16. TG USA: Perryville, Mo.;plastic automobile parts, expansion . . . . . . . . . . . . . . . . . . . . . . . . .300
cent annually for the past 5 years. In 16. Toto USA: Morrow, Ga.;toilets, bathroom fixtures, new . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
contrast, overall US manufacturing jobs 16. Vans: Vista, Calif.;shoes, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
are declining steadily. Much of the tex- FLOOR AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .THOUSANDS OF SQ. FT. (SQ.
tile industry, for instance, has moved M.)
offshore to take advantage of lower 1. Tenneco Plastics Corp.: Jacksonville, Ill.;plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .868 (81)
2. Tenneco Packaging: Temple, Texas;food and trash bags, new . . . . . . . . . . . . . . . . . . . . . . . .825 (77)
labor costs. 3. Euro United Corp.: Buffalo, N.Y.;plastic injection,new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .630 (59)
The converters of commodity plastic 4. Sealed Air Corp.: Madera,Calif.;foam products, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500 (46)
products are unlikely to move offshore. 5. Sterilite Corp.: Perry Twp.,Ohio;plastic food and household containers, new . . . . . . . . . . . . .476 (44)
Commodity plastic converting is capital 6. Totes Isotoner Corp.: Union Township, Ohio;gloves/Rainwear, new . . . . . . . . . . . . . . . . . . . .440 (41)
7. Dart Container: Corona,Calif.;plastic containers, expansion . . . . . . . . . . . . . . . . . . . . . . . . .425 (39)
intensive not labor intensive. The 8. Sterilite Corp.: Perry Twp.,Ohio;plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .417 (39)
potential savings in labor cost of an off- 9. Roman: Addison,Ill.;injection molding,new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .412 (38)
shore facility are offset by the higher 10. General Foam Plastics Corp.: Virginia Beach, Va.;plastic decorative goods, new . . . . . . . . . .400 (37)
transportation costs. Shipping a con- 10. Rubbermaid: Centerville, Iowa;blow molding products, expansion . . . . . . . . . . . . . . . . . . . . .400 (37)
10. Wolverine Technology: Jackson,Mich.;vinyl building products, expansion . . . . . . . . . . . . . . .400 (37)
tainer load of empty PET bottles from 13. Dart Container: Mason,Mich.;plastic containers, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .380 (35)
Asia or South America to the United 14. Dart Container Corp.: Horse Cave, Ky.;foam dinnerware, expansion . . . . . . . . . . . . . . . . . . .365 (34)
States to save on labor costs just doesn’t 15. Mack Molding Co.: Arlington,Vt.;plastic housing for computers, expansion . . . . . . . . . . . . . .360 (33)
16. Ball Plastics: Radisson, N.Y.;plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .350 (33)
make sense. This means that once you 16. Courtesy Corp.: Buffalo Grove, Ill.;plastic molds, expansion . . . . . . . . . . . . . . . . . . . . . . . . . .350 (33)
have located your plant in a given com- 18. AEP Industries: Wilkes-Barre, Pa.;industrial plastic film for packaging,new . . . . . . . . . . . . . .300 (28)
munity, they can plan on your being 18. IRIS USA: Pleasant Prairie, Wis.;plastic consumer products, new . . . . . . . . . . . . . . . . . . . . . . .300 (28)
around for awhile. 18. Pure Tec: Sparks, Nev.;plastics, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300 (28)
18. Toto USA: Morrow, Ga.;toilets, bathroom fixtures, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300 (28)
Good Neighbors employees at the new or expanded ness development for Georgia Power.
Another reason local developers facility. Georgia Power, like utilities The most important thing a company
are more than receptive to plastic con- elsewhere, is a key source of answers to can do to assure timely and accurate
version facility plans is that they repre- questions about labor availability and support during the site selection pro-
sent a win-win proposition. Not only quality. All of this is in addition cess is to prepare a business plan and
can the local development agency count to the technical support on power quan- share it with the agencies trying to help,
on the plant’s being there; it can also tity and quality issues. she maintains. If you are considering
count on the plant’s being a good neigh- The danger is to assume that because several communities, your plan will
bor. Plastic converting is environmen- a plastic converting facility may not allow you to evaluate their responses
tally friendly. There is little or no waste employ hundreds of workers, it doesn’t based on identical criteria.
and little or no impact on air or water qualify for comprehensive location Site selection consultants are another
quality. In addition, it does not require assistance from municipal or utility ser- valuable source of information. Most are
a huge investment in infrastructure. vices. They do. The more responsive experienced in dealing with multiple
Smaller communities can afford the states and communities will try to find a agencies to obtain the competitive infor-
investment in site preparation. The way to help, no matter how large the mation needed. Consultants who have
average plastic plant employs 55 peo- operation is. worked multiple projects within the
ple. Even in areas of high employment “Most companies make only piece- state or states under consideration will
or rural areas, enough employees can meal use of the help that is available,” be familiar with the unique processes
usually be found to staff a new facility or says Robin Spratlin, manager of busi- and therefore will be better able to
support an expansion. This is an impor-
tant consideration in these times of ris-
ing employment. The plastics industry Tips for improving plastic facility
also pays better than most service
industry jobs. The average wage, site selection decisions
including benefits, is close to $14 per 1. Put together a comprehensive prospectus for the new facility. Make the
hour, nearly double the wage for entry- questions you have about any site a part of the prospectus. Ask each state
level jobs in the service industries. agency for help in answering these key questions. Lean on these ready re-
Another attractive feature of plastic sources whenever possible to answer labor, market, permitting, and other ques-
converting plants is their heavy con- tions that are sure to come up in the process. Include a source and application
sumption of power. So the power pro-
of funds document.
ducers work hard to attract and main-
tain them in their distribution area. 2. Be flexible when listing site specifications.
Finally, plastic converting attracts
such support industries as mold repair, 3. Start the selection process by identifying the region of the country that sat-
tool and die shops, electronic and elec- isfies your market needs.
trical maintenance, and general
machinery maintenance. These indus-
4. Initiate contact with the state economic development agencies. Make sure
tries add skilled jobs that can improve
the average wages and level of income that the state agencies involve the economic development resources of the
for a rural community. power, rail, and financial institutions. This can be a powerful team working on
What kind of assistance is available your behalf.
from economic development agencies?
Plenty. On the utility side, Georgia 5. Share your facility prospectus with the economic development team. Present
Power offers a range of site selection the prospectus in a face-to-face meeting.
services, including site selection assis-
tance utilizing a state-wide database, 6. Give the state agencies time to come back to you with sites and communi-
coordination of site visits, transporta- ties that meet your needs as specified in the prospectus.
tion for visits, customized research on
the front end of a project to identify a 7. Visit sites early, eliminating those that are not suitable. Consider making blind
customer base or market, finding sup- visits as did Harry Starnes of Advanced Plastics.
pliers of raw materials and other
required services, assistance with US 8. Make your site selection after a full consideration of all of the issues, not
Customs and FDA matters, arranging just the short-term financial issues.
meetings with permitting agencies,
assistance in obtaining financing, and There is always uncertainty in any location decision. Reduce the uncertain-
training for new employees. The utility ty in the decision process by taking maximum advantage of the services offer-
also recommends construction and ed by the economic development agencies in the region of the country you
engineering firms and real estate com- are searching.
panies to help in the relocation of
prior to the move, added 80,000 sq. ft. in a new facility hundreds of miles away
Top Metro Areas in (743 sq. m.) of manufacturing space to with new employees
New/Expanded the Canton facility in 1997. is as much of a challenge as most plant
The move was prompted by an ac- managers ever want to face in their
Plastics Facilities, 1990-97
quisition and a desire on the part career.
1. Detroit . . . . . . . . . . . . . . . . . .60 of management to consolidate manu- To help Evenflo through this difficult
2. Cleveland-Lorain-Elyria, Ohio . .49 facturing from three locations (two consolidation, the State of Georgia pro-
in Ohio, one in Pennsylvania) to one vided engineering assistance from
3. Chicago . . . . . . . . . . . . . . . . .42 and move their corporate headquarters Georgia Institute of Technology
3. Grand Rapids-Muskegon-Holland, to a new facility. Ohio, Pennsylvania, (Georgia Tech). Engineers from the
Mich. . . . . . . . . . . . . . . . . . . .42 North and South Carolina, Kentucky, school made several trips to the Evenflo
Tennessee, and Georgia were the final- facilities in Ohio and Pennsylvania and
5. Greenville-Spartanburg-
Anderson, S.C. . . . . . . . . . . . .34 ist states. In parallel with the planning assisted in the preparation of plant lay-
process for the new headquarters and outs and process flow in the Canton
6. Akron, Ohio . . . . . . . . . . . . . .30
manufacturing facility, Evenflo orga- facility, and provided other engineering
7. Charlotte-Gastonia-Rock Hill, nized site visits with a clear idea of the and management services as requested
N.C.-SC . . . . . . . . . . . . . . . . .28 size of the facility needed, number of by Evenflo.
8. Fort Worth-Arlington, Texas . . .26 employees, and utility and airport Georgia Tech invested one and a half
access requirements. man-years of engineering effort over a
9. Atlanta . . . . . . . . . . . . . . . . .24
After initial contact and some trips three-month period on Evenflo’s
9. Orlando, Fla. . . . . . . . . . . . . .24 to the states under consideration, site behalf. The success of this project lead
11. Cincinnati . . . . . . . . . . . . . . .22 selectors limited the search to South to a formalized program offered by the
Carolina and Georgia, and finally to State of Georgia through Georgia Tech,
12. Columbus, Ohio . . . . . . . . . . .21
three sites within Georgia accessible to called FaciliTech. These engineering
12. Greensboro—Winston-Salem— Atlanta’s Hartsfield International Air- services from Georgia Tech are avail-
High Point, N.C. . . . . . . . . . . .21 port. The candidate communities were able free to companies moving to
12. Houston . . . . . . . . . . . . . . . . .21 Newnan, Griffin, and Canton. Georgia. Since the program’s inception,
For the final selection process, FaciliTech has added management,
12. Phoenix-Mesa,Ariz. . . . . . . . .21
Georgia Power and Georgia Office of quality systems, and information sys-
16. Dallas . . . . . . . . . . . . . . . . . .18 Industry and Trade officials arranged tems as additional services to compa-
17. Youngstown-Warren, Ohio . . . .17 helicopter transportation to the three nies considering a move to Georgia.
towns, where local development offi- Given the opportunity to do it all over
18. Riverside-San Bernardino, Calif. 16
cials made presentations to Evenflo again, Collins says, “I’d spend more
18. Toledo, Ohio . . . . . . . . . . . . . .16 executives based on their understand-
20. Dayton-Springfield,Ohio . . . . .14 ing of the company’s requirements.
Included in the presentations were
20. Louisville, Ky.-Ind. . . . . . . . . . .14 Top States in New/Expanded
comments by local students designed to
20. Raleigh-Durham-Chapel Hill, address potential school-related Plastics Facilities, 1990-97
N.C. . . . . . . . . . . . . . . . . . . . .14 concerns of employees who would 1. Ohio . . . . . . . . . . . . . . . . . .286
transfer to the location from out of 2. Michigan . . . . . . . . . . . . . . .177
guide a company through the selection state. Following these site reviews, the 3. North Carolina . . . . . . . . . . .154
maze. Evenflo management team met and 4. Texas . . . . . . . . . . . . . . . . .137
selected the Canton site. 5. South Carolina . . . . . . . . . . . .84
Evenflo’s Story Says Terry Collins, Evenflo’s director 6. Kentucky . . . . . . . . . . . . . . . .82
In 1993, Evenflo, a manufacturer of of manufacturing, “We chose Georgia 7. Indiana . . . . . . . . . . . . . . . . .76
blow molded baby bottles and com- because of the work of Deborah Dobbs 7. Illinois . . . . . . . . . . . . . . . . . .76
pression molded rubber nipples, built [of Georgia Power] and George Allen 9. Tennessee . . . . . . . . . . . . . . .75
a 260,000-sq.-ft, (24,150-sq.m.) facili- [of the Georgia Office of Industry and 10. Florida . . . . . . . . . . . . . . . . .73
ty for a new headquarters and con- Trade]. They wouldn’t let me move any- 11. California . . . . . . . . . . . . . . .65
solidated manufacturing in Canton, where else.” In addition to competitive 12. Wisconsin . . . . . . . . . . . . . . .57
Ga. Evenflo operates injection incentives, the State of Georgia provid- 13. New York . . . . . . . . . . . . . . .56
molding machines, extrusion blown ed Evenflo with help through its Quick 14. Pennsylvania . . . . . . . . . . . . .53
film for bag making, thermoform- Start Program, which assists companies 15. Alabama . . . . . . . . . . . . . . . .49
ing, silk screening, paper conversion, in training employees. 16. Mississippi . . . . . . . . . . . . . . .48
automated assembly processes, plus a The move from Ohio included the 17. Georgia . . . . . . . . . . . . . . . . .47
distribution center, all under one roof. relocation of 28 Evenflo salaried 18. Virginia . . . . . . . . . . . . . . . . .45
This is a diverse manufacturing opera- employees, which was no small feat. 19. Missouri . . . . . . . . . . . . . . . .36
tion for the plastics industry. Successfully shutting down three facili- 20. Arkansas . . . . . . . . . . . . . . . .32
Evenflo, an Ohio-based company ties and starting up the same processes
Massachusetts Launches New Plastics Alliance
Massachusetts development officials late last year unveiled a 16-point action strategy to help the more than 650 Massachusetts plastics
manufacturers succeed and expand, including the creation of a new statewide plastics group.
To formulate an industry-driven action strategy, officials from the Dept. of Economic Development, the Massachusetts Office of Business
Development and the Massachusetts Technology Collaborative met for months with plastics industry executives from the North Central
Massachusetts Plastics Council, the Berkshire Plastics Network, the Merrimac Valley Plastics Network, the Society for the Plastics
Industry and the American Plastics Council. The group was chaired by Tony Cetrone, former chairman of the North Central
Massachusetts Plastics Council.
The existing organized plastics councils and networks agreed to organize the Massachusetts Plastics Alliance (MAPA) to better inform
state officials and the public of the concerns and needs of the plastics industry. In addition, the Massachusetts Office of Business
Development, in partnership with MAPA, will establish a state-level plastics industry specialist to work with MAPA and its member orga-
nizations to better respond to industry specific concerns and issues.
“The Massachusetts plastics industry continues to grow, creating good-paying jobs for residents throughout the state,” notes
Cetrone. “By establishing MAPA, we hope to better inform state officials about the positive economic impact being made by our
industry. Likewise, we hope that state and legislative leaders will increase the level of support for initiatives that will improve our
industry’s ability to grow and prosper.”
One of the primary issues local plastics industry executives identified is the need to provide more incumbent worker training and to
encourage students, at all levels, to consider careers in the plastics industry. To address this issue, MAPA announced its support for leg-
islation to establish a tax credit for manufacturers, including plastics manufacturers, for companies enrolling employees in job training
programs.
Similarly, MAPA will study and explore the costs and benefits of expanding existing statutes, designed to encourage companies to donate
modern equipment used for educational purposes, in order to evaluate both the establishment of more powerful incentive programs for
companies considering such donations.
“Gov. Cellucci strongly believes that the creation of the Massachusetts Plastics Alliance is a positive step forward,” said David Tibbetts,
director of the Dept. of Economic Development. “We look forward to working with MAPA and the existing regional plastics industry orga-
nizations to continue to determine how we can help the plastics industry grow and prosper. We have made tremendous progress [in
improving] the business climate in Massachusetts for all manufacturers these past seven years, and look forward to implementing those
initiatives identified by the plastics task force over these past several months to do even more.”
time on the issues of the employees The local industrial development his region. The first is preparation of
available in the area.” The work force agency in Winchester was very aggres- a detailed business plan that covers
he has attracted since moving to Canton sive in wanting the added jobs for its the impact of the new business on
is excellent, but they lack some of the community and won the new facility. A the community. The second is prepa-
job skills and factory work experience 50,000 sq. ft. (4,645 sq. m.) plant was ration of a budget for the funds
that would have made the transition built to specifications and leased back to needed and how they will be applied.
even easier. One lesson learned is to TKA at attractive rates. Ultimately, Williams wants to know,
spend time talking with the manufac- TKA started operations in February “What do you need to be success-
turers already operating in the commu- 1997 and currently employs 86 people ful?” Such cooperation and flexibili-
nity to form a better idea of the nature with a payroll of $2 million. In addition ty in loans, grants, and incentives can
of the availability of the work force, to help from the local development make it much easier to get a plant up
Collins relates agencies, TKA also received a loan from and operating.
the Tennessee Valley Authority (TVA) Chuck Shoopman, manager of in-
Tennessee Fits the Bill to assist in the purchase of equipment. dustrial development for TVA, says
In contrast to the major move of an They got further assistance in equip- another resource available through
established corporation like Evenflo, ment purchases from their injection TVA is a Site Selector database of over
TKA Plastics opened a new plastic-con- molding machine supplier, Mitsubishi, 1,500 available plant sites. The new
verting operation in Winchester, Tenn. in extended payment terms and low database was launched June 1st and
TKA injection molds parts for the grow- down payments. can be accessed on the Internet at
ing automotive industry in the region. Today, TKA is up and operating at www.tva.gov.econdev. “Site Selector
According to Todd Story, Controller near the rates forecast in their initial can really shorten the time required to
of TKA, the company decided on the plan. They believe they made the right find good locations in the 170 counties
Tennessee site because of its customer location decision. Without the assis- serviced by TVA,” says Shoopman.
base. TKA executives prepared a busi- tance of their equipment supplier, re-
ness plan and approached Doug Wil- asonable lease rates, and the loans avail- A Personal Choice
liams, economic development director able from TVA, it would have been dif- Advanced Plastics, a start-up ex-
of the South Central Tennessee Devel- ficult for TKA to get started. pansion facility of Scottsboro Plastics
opment District. Site visits were ar- Williams uses a two-part strategy of Indiana, is building a new plant
ranged to three communities. to attract such businesses as TKA to to provide better service to its grow-
ing customer base in and around mid- The Top 20 Global Plastics Facilities, 1990 to Present
dle Tennessee.
INVESTMENT MILLIONS OF U.S. DOLLARS
The company chose Livingston,
1. Hong Kong Petrochemical Co. Limited: Hong Kong;polystyrene, new . . . . . . . . . . . . . .1,000
Tenn. for its new plant. After drawing a 2. General Electric Co.: Cartagena,Spain;plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .750
circle of radius 200 miles, centered on 3. Petrobras/Rio Polimeros: Rio de Janeiro, Brazil;ethylene and polyethylene, new . . . . . . . . . .715
their customer base, Harry Starnes, 4. British Petroleum: Central Java,Indonesia;polypropylene, new . . . . . . . . . . . . . . . . . . . . . .230
president of Advanced Plastics, made 5. Celanese Canada: Millhaven, Canada;plastic packaging materials, new . . . . . . . . . . . . . . . .190
blind visits to selected communities 5. Dow Chemical Co./Siam Cement Co.: Bangkok, Thailand;polyethylene, new . . . . . . . . . . .190
within that area. During the visits he 7. Nissho Iwai Corp./British Petroleum: Java,Indonesia; polyproylene, new . . . . . . . . . . . . . .148
8. Montell: Rotterdam,Netherlands;plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133
went to local restaurants and talked to
9. Petrochem Industries: Serang, West Java,Indonesia; synthetic rubber, new . . . . . . . . . . . . .130
people from the community. 10. Venture Holdings Trust: Melbourne, Australia;plastic injection molding, expansion . . . . . . . .110
“Talking to the people that live and 11. Zimmer GmbH/Bangkok Cable Co.: Rayong, Thailand;plastic bottles, new . . . . . . . . . . . . .102
work there gives you a real feel for 12. Bangkok Polyethylene Co.: Map Ta Phut, Thailand;polypropylene, new . . . . . . . . . . . . . . . . .98
the community,” Starnes relates, adding 13. Norsk Hydro A.S.: Heroya,Norway;PVC, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
that he was able to gather the kind of 14. General Electric Plastics: Cartaguena,Spain;plastics, expansion . . . . . . . . . . . . . . . . . . . . .70
information that doesn’t show up in the 14. Sumitomo Chemical Co.: Chiba Prefecture, Japan;polypropylene, expansion . . . . . . . . . . . . .70
16. Elf Atochem: Singapore;polystyrene, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
labor statistics. Only when he had set-
17. Hoechst Trespaphan/Thai Petrochemical: Rayong, Thailand; plastics and petrochemicals, new . . . . . . . .64
tled on three candidate communities 18. Occidental Chemical Co./Thai Plastic: Rayong, Thailand;PVC plastic,new . . . . . . . . . . . . . .61
did he involve the local and regional 19. Ectona Fibres Ltd.: Cumbria,UK/England;polyethylene terephthalate, expansion . . . . . . . . . .58
economic development agencies. 19. Jilin Chemical Industries: Beijing,China;specialty rubber products, new . . . . . . . . . . . . . . . .58
There are several keys to a successful
site decision. First do your homework. EMPLOYMENT EMPLOYEES
Get the team together that will make 1. Venture Holdings Trust: Melbourne, Austrlia;plastic injection molding,expansion . . . . . . . . .700
2. Boonnam Boonnamsap: Bangkok, Thailand;nylon and polyester tire cord,new . . . . . . . . . .545
the decision and work through a com-
3. Plastic Omnium: Herentals, Belgium;auto bumpers and gas tanks, new . . . . . . . . . . . . . . . .250
prehensive site selection plan. The 4. General Electric Plastics: Cartaguena,Spain;plastics, expansion . . . . . . . . . . . . . . . . . . . . .235
plan should include minimal accept- 5. International Bag Mfg. Ltd.: Mission,Canada;packaging bags/wrap, new . . . . . . . . . . . . .200
able specifications for the facility or 5. Ken Jui Su: Chon Buri, Thailand;plastic sheets and film,new . . . . . . . . . . . . . . . . . . . . . . . .200
new site. The important thing is to 5. Mobil Chemical Co.: South Limburg,Netherlands;polypropylene film,new . . . . . . . . . . . . . .200
decide in advance of the search the key 5. Neyr Plastiques: Peterlee, UK/England; plastic injection moldings and assemblies, new . . . . . . . . . . . . . . .200
criteria for the facility, the type of com- 9. Dynoplast: Clwyd,UK/Wales;blow molding,new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180
10. Dai Dong: Hatvan, Hungary;plastic parts for electronic equipment,new . . . . . . . . . . . . . . . . .170
munity, and the nature of the work
11. Young Shin UK Ltd.: Billingham,UK/England;plastic injection, new . . . . . . . . . . . . . . . . . . .150
force you require. 12. Philips Plastics: Wrexham,UK/Wales;plastic products, new . . . . . . . . . . . . . . . . . . . . . . . . .135
One of the suggestions from Robin 13. DuPont K.K.: Tochigi, Japan;plastics for auto parts, expansion . . . . . . . . . . . . . . . . . . . . . . .130
Spratlin of Georgia Power is, “Don’t be 14. Diaplastics U.K.Ltd.: Bridgend,UK/Wales;plastic injection molding,expansion . . . . . . . . . . .100
so rigid in your specifications that you 14. Fishbach KG: Temse, Belgium;plastic cartridges, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
overlook a suitable 45,000 square foot 14. Montell: Rotterdam,Netherlands;plastics, new . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
facility when you specified a 40,000 17. Findlay Industries: Tomaszow, Poland;interior components for the auto industry, new . . . . . . .90
18. Pine Plastics: Macclesfield,UK/England; injection molded plastics, expansion . . . . . . . . . . . . . .85
square foot one.” To avoid problems
19. Twinpak: Regina,Canada;plastic containers, expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
like this, range your specifications. 19. U.P.T. Holdings: Cidra,Puerto Rico;injection molding for pharmaceuticals, new . . . . . . . . . . . .75
Since state and local incentives are
usually based on the number of jobs, FLOOR AREA THOUSANDS OF SQ. FT. (SQ. M.)
payroll, or sales from the new or 1. International Bag Mfg. Ltd.: Mission,Canada;packaging bags/wrap, new . . . . . . . . . .200 (19)
expanded facility, these should be 2. Frank OHG: Wolfersheim,Germany;plastic tubes, new . . . . . . . . . . . . . . . . . . . . . . . . . .180 (17)
included in the plan document. Include 3. Hong Kong Petrochemical Co. Limited: Hong Kong, Hong Kong;polystyrene, new . . . . . . . . . . . .177 (16)
4. Dualex Enterprises: Rexdale, Canada;plastic extrusion and molding,new . . . . . . . . . . .150 (14)
a description of the products produced,
5. Dynoplast: Clwyd,UK/Wales;blow molding,new . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 (13)
the customers for these products, 6. NationalPak Asia Pacific: , Singapore;plastic packaging,new . . . . . . . . . . . . . . . . . . .111 (10)
the processes used, and the skill of the 7. Walbro South America Ltd.: Cacapava,Brazil; thermoplastic fuel tanks, new . . . . . . . .108 (10)
workers required in the plant. 8. Diaplastics U.K.Ltd.: Bridgend,UK/Wales;plastic injection molding,expansion . . . . . . .107 (10)
The anticipated utility demands 9. AFA-Polytek B.V.: Helmond, North Brabant,Netherlands; plastic trigger-spray devices, new . . . . . . . . .100 (9)
(power, water, and natural gas) will also 10. Contico Europe Holdings: Redruth,UK/England;plastic garden products,plant/garden items,new . . . . . . . . . . . . .90 (8)
be helpful as the communities consider 11. Hi-P Tool & Die: Jurong,Singapore;plastic injection molding,new . . . . . . . . . . . . . . . . . . .86 (8)
12. Engel Canada: Guelph,Canada;plastic injection molding,expansion . . . . . . . . . . . . . . . . .76 (7)
how they can meet your needs. Catalog
13. Findlay Industries:Tomaszow,Mazowiecki,Poland;interior components for the auto industry,new . . . . . . . . . . . . .70 (7)
the quantity and types of effluents and 14. Constar-Pepsi: Mexico City, Mexico;recyclable plastic bottles, expansion . . . . . . . . . . . . . .65 (6)
waste products leaving the facility. 15. Southern Tech Plastics: Juarez,Mexico;plastic injection molding,new . . . . . . . . . . . . . . .61 (6)
Come prepared with this information to 15. Colorite Polymers: Poleglass, UK/Northern Ireland;vinyl compounds, new . . . . . . . . . . . . .55 (5)
your first meeting with state agencies, 15. Constar-Pepsi: Mexico City, Mexico;recyclable plastic bottles, new . . . . . . . . . . . . . . . . . . .55 (5)
and it will shorten the time for the 18. Sotralenz: Peterlee, UK/England;plastic containers, expansion . . . . . . . . . . . . . . . . . . . . . .55 (5)
selection process and should improve 19. DataCard Toppan Moore Ltd.: Hong Kong;security plastic cards, new . . . . . . . . . . . . . . .52 (5)
20. Woo One: Hartlepool,UK/England;plastic casings for PC monitors, new . . . . . . . . . . . . . . .50 (5)
the quality of the decision.
Any special help required in making G. David Moore, Ph.D., is principal
or implementing the selection decision of Moore Associates Consulting, Ltd.,
should be included in the plan docu- Cumming, Ga.
ment. Armed with this document you
are ready to approach state agencies in
the states you are considering. SS
