SOLON, Ohio (June 17, 2004) – More than 500 registered bidders attended an auction held by Stopol, Inc. yesterday to purchase surplus plastics manufacturing equipment from continuing operations of the Rubbermaid Group's Home Products division in Wooster.
Solon, Ohio-based Stopol, a leader in arranging the acquisition and sale of production equipment and machinery, businesses, divisions, product lines, and manufacturing licenses in the plastics industry, organized and managed the event.
Buyers from plastics manufacturing operations in Northeast Ohio, as well all over the world, converged on the Rubbermaid Group's 1.3 million-sq.-ft. Wooster facility to bid on nearly 2,000 pieces of equipment, including more than 60 late-model 90- to 3,000-ton injection molding machines and a substantial quantity of ancillary plastics and toolroom equipment.
Recent efforts by the Rubbermaid Group to streamline operations and bolster efficiencies left the company with a surplus of processing equipment. In December, the Newell Rubbermaid Inc. unit announced plans to close the Wooster plant in 2004. As a result, Rubbermaid Group consulted with Stopol to help it divest the excess machinery through a series of auctions.
"On one hand, this is the end of an era. This Rubbermaid plant has been here since the '60s," according to Neil Kruschke Jr., Stopol CEO. "On the other hand, the budget constraints placed on smaller manufacturers normally would prevent many of them from acquiring these types of machines. These auctions are tremendous opportunities for the smaller manufacturing operations, particularly those in Northeast Ohio, to purchase high-quality equipment at affordable prices. "
The showcase auction item, a 2001 Cincinnati Milacron 3000-ton, 607-shot injection molding machine, created a bidding war in which the winner paid $880,000 for a piece of equipment that typically costs nearly $1.4 million. A 1998 Cincinnati Milacron 1000-ton, 288-shot injection molding machine also drew a great deal of interest, fetching $172,000.
"The economy is in a recovery mode and the purchases of big-ticket items at this auction certainly illustrate that companies are spending money to bolster operations," Kruschke said. "When a company buys a 3000-ton injection molding machine, it is looking to increase its production capacity and subsequently will need to hire more workers to operate that machinery. A 3000-ton injection molding machine generally translates into at least five to six new jobs."
The Wooster event was the second of three auctions -- being held throughout June at three different Rubbermaid Group plants -- featuring excess equipment from those facilities. The first auction occurred June 8 at the Rubbermaid Home Products division's Cleburne, Texas, facility. The third auction takes place June 23 at the Rubbermaid Cleaning Products division plant in Greenville, North Carolina.
For a comprehensive listing of all available equipment, directions to the North Carolina auction or more information on auction rules and terms of sale, please visit the auction index at www.stopol.com.
About Stopol, Inc.
Headquartered in Solon, Ohio, Stopol is a privately held corporation specializing in arranging the acquisition and sale of production equipment and machinery, businesses, divisions, product lines, and manufacturing licenses in the plastics industry. With unparalleled insight into the business market and the value of potential acquisitions, Stopol takes efficient, tactical approaches to connecting buyers and sellers in the plastics industry. In direct contact with more than 27,000 manufacturers, Stopol serves as a strategic partner for merger and acquisition opportunities, helping companies find cost-effective solutions while maximizing their resources.
Contact: Neil Kruschke Jr.
Stopol CEO
Phone: 440.498.4000
Fax: 440.498.4001
www.stopol.com
E-mail: neilk@stopol.com
Contact: Bryan Kokish
Marketing Director, Stopol Inc.
Phone: 440.498.4000
Fax: 440.498.4001
www.stopol.com
E-mail: bryank@stopol.com