Spartech Announces Expansion of Ramos Arizpe Plant Facility in Conjunction With New Customer Outsourcing Opportunity
July 18 2006 - 9:30AM
PR Newswire (US)
ST. LOUIS, July 18 /PRNewswire-FirstCall/ -- Spartech Corporation
(NYSE:SEH) announced today that its Board of Directors recently
approved a 101,000 square foot expansion of its Ramos Arizpe plant
facility. This decision was made as a result of substantial demand
growth at that plant and to service 30 million pounds of new sheet
extrusion business with Whirlpool Corporation which is currently
completing a new manufacturing facility located in close proximity
to the Spartech site. Spartech's President and CEO George A. Abd
commented, "Our Ramos site was built to service demand from
Whirlpool three years ago and is the lowest cost plant facility in
Spartech's portfolio. The performance of our excellent team at the
plant gives us great confidence in this investment and we are very
grateful that our performance has encouraged Whirlpool to enter
into an additional 5 year agreement to supply their new and
existing plant sites in Mexico. Outsourcing by OEM's of non-core
processes is one key element of our growth strategy which also
includes new product innovation and strategic acquisitions. Ramos
has been our most successful outsourcing opportunity to date and
this expansion gives us the opportunity to service this new demand
while creating the infrastructure for future expansion." The
building expansion and capacity increase will require a capital
investment of approximately $5.2 million and is expected to be
complete by March of 2007. This expansion will increase the size of
the Ramos plant to 238,000 square feet. Spartech Corporation is a
leading producer of engineered thermoplastic sheet materials,
polymeric compounds and concentrates, and engineered product
solutions. The Company has facilities located throughout the United
States, Canada, Mexico and Europe, with annual sales of
approximately $1.4 billion. DATASOURCE: Spartech Corporation
CONTACT: George A. Abd, President and Chief Executive Officer,
+1-314-721-4242, or Randy C. Martin, Executive Vice President and
Chief Financial Officer, +1-314-721-4242, both of Spartech
Corporation Web site: http://www.spartech.com/
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