Plastic bag plant in California to close

Feb. 13, 2007
The world's largest plastic bag company, Hilex Poly ( announced Feb. 13 that it would close its Rancho Cucamonga, Calif., plant as part of its plans to consolidate its manufacturing operations. The company said the closure is part of the integration strategy it has been implementing since its acquisition of Vanguard Plastics in October of 2005. An estimated 120 employees will be put out of work by this action. “While it was a difficult decision to close our Rancho Plant, this consolidation will enhance our low cost position in a very competitive industry," said Hilex CEO, Leon Farahnik. Farahnik said his company’s new new facility in Jerome, Idaho now is operating at designed capacities and, combined with the company’s 10 other manufacturing locations are positioned to serve its customers. Hilex also announced it will maintain a distribution location in Southern California to deliver its high level of customer service and responsiveness. Hilex' said its purchase of Vanguard in 2005 created the world's largest bag company. The integration of Vanguard has resulted in a new centralized customer service organization, a single ERP business system, and a restructured sales force to more effectively serve new and existing customers. Hilex is a member of the Los Angeles, California based HPC group of companies, as well as an affiliate of Dewberry Cesinger Holdings (the private equity arm of Atlanta-based Dewberry Capital Corp.)