Pallet molder Greystone ready to go big with Paradigm acquisition
Pallet injection molder Greystone Logistics Inc. has diversified into extrusion with its recent acquisition of the assets of Paradigm Plastic Pallets Inc.
Now, Greystone CEO and Chairman Warren Kruger can make pallets as large as he likes.
"Customers kept asking for large pallets," he said April 25 by phone. He got requests for products as large as 96 by 48 inches, but didn't have the ability to make them with injection molding.
"As many times as I've been asked about odd-size pallets, this was the perfect [solution]. … We're excited about the extrusion [product] line. We can serve lot of customers looking to convert from wood. It's a good opportunity for us."
Paradigm operated out of a 50,000-square-foot facility in Jasper, Ind., where it extruded hollow profiles for its pallets. Among the assets Greystone purchased are two extrusion lines, robotics and associated equipment that will remain in the Jasper plant.
Kruger said Greystone may use the Paradigm name as a brand, but that hasn't been decided.
Financial details were not disclosed, but Kruger had said in a mid-April call with investors that struggling Paradigm's backers wanted to liquidate the equipment. "They just spent $3 million plus on brand-new equipment back right before COVID" clobbered the market, he said.
Greystone will continue using 100 percent recycled high density polyethylene for almost all its pallets, but it does fill rare requests for products made with polypropylene or recycled/virgin mixes, Kruger said. Its customers include companies in automotive, pharmaceutical, food and beverage, and consumer markets.
The injection molder's corporate office is in Tulsa, Okla. Its plant, in Bettendorf, Iowa, houses 20 presses with clamping forces of 300 tons to 3,300 tons.
The company is adding two more 3,300-ton machines in an undisclosed partner's facility in Missouri for a project that involves producing fire-resistant pallets. Chief Financial Officer Bill Rahhal said in the investors call that those machines will able to produce about 200,000 pallets a year, "so that's additional capacity of close to $400,000 per year."
Greystone employs more than 200. The publicly traded company reported sales of $74.2 million and profit of $4.7 million for the fiscal year ended May 30, 2022.
Kruger is also chairman and non-executive president of thermoforming major Kruger Family Industries LLC in Portage, Wis., which owns Penda and TriEnda. The companies make automotive, agricultural, packaging, consumer and industrial materials-handling products including pallets. KFI ranked No. 11 on Plastics News' thermoformers ranking, with four North American plants generating relevant 2022 estimated sales of $380 million.