SPARTECH CORP. EXPANDS PLASTICS PRODUCTION WITH RECENT PURCHASE

ST. LOUIS Spartech Corp. is in line to become the largest producer of custom rigid-sheet and rollstock plastic in the United States.

"The acquisition of Penda Corp.'s custom extrusion division should add $10 million to $12 million in annual sales," Spartech President Bradley Buechler said in an address at the company's annual meeting. "The transition of equipment is now complete, with the fourth line installed at our Mankato, Minn., facility.

"This will raise our rigid-sheet and rollstock group's share of the $850 million domestic custom sheet extrusion to approximately 17 percent," said Buechler. "Following this acquisition we became the largest custom rigid-sheet and rollstock-plastic producer in the U.S."

Spartech, headquartered in St. Louis, has two operations in Cape Girardeau Atlas-Alchem, One Atlas Drive, a rigid-sheet operation, and The Resin Exchange, Nash Road Industrial Park.

Shareholders attending the annual meeting at St. Louis were told the company intends to improve its operating performance and that it will emphasize growth in thin-gauge packaging applications for its rigid-plastic-sheet and rollstock unit the rest of the year.

"In our industry, the significant growth opportunities lie in thin-gauge packaging markets such as sterile packaging for food products and medical applications," said Buechler. "Products used in food packaging are projected to grow 20 percent by 1996, to approximately 56 million pounds annually."

Buechler said polystyrene and products used in medical applications are also expected to grow to about $2.1 billion in 1996, compared to the $1.4 billion in 1991.

"Our total transaction quality program, together with our strategic Penda acquisition, will allow us to increase our participation in these growth markets and retain our leadership position in the custom rigid-sheet and rollstock extrusion industry," said Buechler.