News Petoskey Plastics

Recent Articles:
Petoskey Plastics Joins Aftermarket Rewards™ Loyalty Program
Petoskey Plastics Receives Quality Management System Certification
Closing the Plastics Loop Means More Green
Petoskey Plastics To Open Third Plant

Recent Press Releases:
Petoskey Plastics Expands, Finds New Corporate Offices
Petoskey Plastics Gets $1 Million Boost From State of Indiana

Petoskey Plastics Joins Aftermarket Rewards™
Loyalty Program
PETOSKEY, MI (March 20, 2007)

Petoskey Plastics is now a participating manufacturer in the
Aftermarket Rewards™ loyalty program. With its Slip-N-Grip® and Image Floor Mats® brands, Petoskey joins leading aftermarket manufacturers such as 3M, DuPont, Casite, Keystone and others in offering the innovative program.

Aftermarket Rewards™ allows buyers to earn valuable points by simply purchasing Petoskey Plastics qualifying products. Customers simply peel off reward codes that are affixed to the products, enter the codes on the user-friendly Aftermarket Rewards™ Web site or utilize the mail-in option. Points can then be redeemed for personal or business rewards. Rewards include everything from golf clubs to computers, and jewelry to office equipment.

Aftermarket Rewards™ was developed by BI, an international company that focuses on business improvement by changing the behavior of employees, customers and channels. The company has more than 1,000 associates providing quality-driven services to major corporations and in 1999 earned the prestigious Malcolm Baldrige National Quality Award. For more information about Aftermarket Rewards™ or to view the latest list of sponsors, visit www.aftermarketrewards.com.

For more information on BI, visit the company’s Web site at www.biworldwide.com.

Petoskey Plastics Receives Quality Management
System Certification

Company Registered To ISO 9001:2000 Standard

PETOSKEY, MI (February 16, 2007) – Petoskey Plastics announced today that it has been assessed and registered as conforming to the requirements of the ISO 9001:2000 standards. The Quality Management System (QMS) is applicable to the company’s design and manufacture of engineered plastic film and bags using new and recycled materials.
ISO (International Organization for Standardization) is the world's largest developer of standards. Although ISO's principal activity is the development of technical standards, ISO 9001 applies to all types of organizations, regardless of size or function. The system is designed to help both product and service oriented organizations achieve standards of quality that are recognized throughout the world.

Petoskey Plastics has had a QMS since 1998, and had been registered to QS 9000. With its QS 9000 expiring last December, the company embarked on an initiative in January 2006 to implement a new QMS that would provide a framework for continued improvement and better service to its customers, associates and community. Petoskey Plastics’ new QMS has four areas of focus: interaction within its diverse processes, customer satisfaction, continual improvement and measurement, and communication of its performance.

Intertek Testing Services, NA, Inc. completed the ISO 9000:2001 assessment and registration. Intertek is a global leader in testing, inspection and certification of products, commodities and systems.
About Petoskey Plastics

Petoskey Plastics, Inc. is a global leader in the production of innovative, high-performance co-extruded plastic bags and film using sustainable manufacturing processes. A privately held company with over 35 years of continuous growth, Petoskey Plastics supplies the automotive, recycling, food, retail and packaging industries with products that work to make our world better. Headquartered in Petoskey, Michigan, Petoskey Plastics has locations in Michigan, Indiana and Tennessee. For more information visit www.petoskeyplastics.com.

Closing the Plastics Loop Means More Green
Petoskey Plastics Teaches State and Local Officials About Benefits of Sustainable Manufacturing Practices
PETOSKEY, MI

You might say that “going green” is in the bag for a northern Michigan Plastics manufacturer. Petoskey Plastics is putting recycled plastic material in everything from trash bags to protective seat covers.

Actually, not in the bags themselves – but in the plastic from which they are made.

State and local economic development and elected officials learned about leading edge developments in producing polyethylene plastic bags and film at a recent visit to the Petoskey company’s headquarters.

Petoskey Plastics, Inc. manufactures a broad range of products ranging from automotive supplies including Slip-N-Grip® disposable seat covers, paper floor mats and steering wheel covers to consumer products including Can Sacks®, compactor bags, carryout bags, reclosable deli bags and private-label trash bags sold through major retailers in Michigan and elsewhere.

Founded in 1969 with five employees, the privately held company has grown from $74,000 to $60 million in sales, and now employs 265 people. The company has manufacturing facilities in Petoskey, Tennessee and Indiana, with a sales office in Birmingham, Michigan and sourcing office in Shanghai, China.

While impressed by Petoskey Plastic’s remarkable growth, what caught the attention of the visitors is that the company is at the forefront in the development of sustainable manufacturing processes in an industry that is dependent on petroleum products. The company is emphasizing its “closed loop recycling systems” approach that diverts and recycles landfill-bound plastic waste for use in its products.

Paul Keiswetter, Petoskey Plastics president and founder, is an early post-consumer plastic bag recycling innovator and a staunch advocate of the “closed loop recycling systems” approach. “The idea is to divert landfill-bound plastic waste here in Michigan for reuse in our products that are in turn consumed in Michigan,” said Keiswetter, a Vietnam Marine veteran. “Our goal is to include recycled materials to the greatest extent possible, whenever possible, in our products. It’s good for the environment, and good for business because it reduces our cost.”

Keiswetter said that the company is in the midst of an aggressive push to increase the volume of recycled materials it collects for processing. So much so that it purchased a 280,000 sq. ft. facility in Hartford City, Indiana to expand its post-consumer and industrial recycling operations. Keiswetter expects to invest over $8 million converting the former overhead door plant for its use, including installing state-of-the-art recycling equipment. “We will also relocate upgraded equipment from our Petoskey facility, so when completed, the Hartford City facility will have tremendous capabilities.” Keiswetter added that Petoskey Plastics was attracted to the Indiana site because of its strategic location in relation to the waste stream. “It’s ideally located in the center of U.S. commerce and along major transportation routes.”

Furthering its efforts in sustainable manufacturing, the company is experimenting with emerging technology that would allow it to produce an environmentally friendly plastic from renewable resources.

Aside from its breakthrough technologies in raw materials, one of the company’s most significant engineering innovations is its use of three-layer dies in bag and film manufacturing. Most competitors’ bags are made by mixing multiple resins rather than layering to acquire desired characteristics. Petoskey Plastics’ technology ensures that the proper resins are found only in the desired surface layer of the product – resulting in higher performing products.

The company has received a number of awards and special recognitions for its efforts including being named a Automotive News PACE Award finalist for design of its recycled seat covers. It also received the Keep America Beautiful Award sponsored by Ford Motor Company for its post-consumer recycling efforts.

Following a tour of the facility, the economic development group met with the Petoskey Plastics executive team to discuss local and state resources that could support the company’s momentum.

As the meeting concluded, State Representative Gary McDowell presented Keiswetter with a plaque from the State of Michigan recognizing its growth. “Petoskey Plastics is an outstanding example of the kind of innovative, high-growth businesses that our state needs,” McDowell said. “Additionally, your leadership in sustainable manufacturing greatly benefits not only the local community, but people throughout Michigan.”

Petoskey Plastics to Open Third Plant
By Michael Lauzon

PLASTICS NEWS CORRESPONDENT
HARTFORD CITY, IND. -- Film and bag producer Petoskey Plastics Inc. plans to open a plant in Hartford City, its third.

The Petoskey, Mich., firm is buying a building formerly occupied by Overhead Door Co. and plans to start a bag production and recycling operation by February, according to news releases issued by the company and Indiana Economic Development Corp. The 300,000-square-foot facility will employ more than 40, officials announced Aug. 9.

Petoskey Plastics will invest about $8.8 million in the project, including the building cost and equipment. The facility will include scrap and post-consumer film recycling and will have total capacity of about 20 million pounds per year.

The company’s product line includes disposable auto seat covers, steering wheel covers, auto paint-spray sheets, consumer bags for compactors, industrial trash bags, carryout sacks and reclosable delicatessen bags. It produces polyethylene and polypropylene films on 18 lines in Petoskey and Morristown, Tenn., according to Plastics News’ film and sheet survey data.

The Petoskey operation includes a post-consumer recycling center for film and bags. The company has sales of about $60 million and employs about 265, according to the news release.

Petoskey also has sales offices in Birmingham, Mich., and a sourcing office in Shanghai.

Indiana Economic Development Corp. is offering incentives of up to $30,000 in training grants, up to $100,000 in infrastructure assistance to the local community and about $120,000 in tax credits based on job creation and investment. Hartford City will provide a 10-year tax abatement and up to $565,000 for off-site infrastructure improvements. Purdue University’s Technical Assistance Program will help Petroskey Plastics lay out the facility.

“We chose Indiana because the state is strategically located for distribution activities and provides ready access to a quality workforce — both of which are important for our strategic growth,” said Petoskey Plastics President Paul Keiswetter in the news release.

Petoskey Plastics Expands, Finds New Corporate Offices
By Ryan Bentley

On a steady growth trend, locally based manufacturer Petoskey Plastics will expand its footprint next year with new downtown Petoskey offices and a new recycling plant in Indiana.

The company is in the process of acquiring the former Great Lakes Gas Transmission Co. office building at Petoskey and Bay streets for use as a corporate headquarters. Plans call for the three-story building’s ground-level parking garage to be converted to lobby and office space. Petoskey Plastics expects to have the building remodeled and ready to occupy by June 2007.

The company, which has seen its annual revenues grow from $74,000 during its first year of production in 1970 to $60 million in 2005, will relocate about 28 employees from a cramped office area at its U.S. 31 South manufacturing plant to the downtown building, which will offer 7,500 square feet of space.

“ We don’t want to get too carried away, but it certainly is a symbol of doing things right for the past 36 years,” Petoskey Plastics president and owner Paul Keiswetter told a group of economic development officials and state government representatives visiting the company’s local plant Friday.

The company expects its acquisition and renovation of the Great Lakes Gas Transmission building will cost about $3 million.

Andy Hayes, president of the Northern Lakes Economic Alliance, said Petoskey Plastics’ plans for the downtown site seem to reflect the company’s commitment to the Petoskey area.

“ Anytime you can get a corporate headquarters in your community, that is very important,” he said.

Protective plastic covers which keep automotive seats clean during vehicle assembly and service are a key part of Petoskey Plastics’ product line.

The company also produces plastic vehicle coverings used by body shops, retail trash bags, merchandise bags, recycling sacks and custom packaging.
The company currently employs about 265 people, 145 of them at its Petoskey facility. Petoskey Plastics also has a plant in Morristown, Tenn., a sales office in Birmingham and a sourcing office in Shanghai, China.

Petoskey Plastics will invest $8 million over three years to develop a recycling plant in Hartford City, IN. This facility, occupying a former Overhead Door Co. manufacturing plant, is slated to open in January.

“ Our focus is going to be, let’s get closer to our market ... and focus on the Petoskey plant to make more bags, make more products,” Keiswetter said.

With developments such as the Bay Harbor resort having occurred around the U.S. 31 plant in recent years, company officials note that there’s little room left for expansion of it.

The company likely will reassign Petoskey employees who’ve been involved with recycling operations to new tasks. Keiswetter said a focus on contact with customers likely has helped Petoskey Plastics succeed. He noted that the company checks with customers to find out how their product needs are being met and to identify any problems with the product.

It was this type of discussion with Ford Motor Co. that led Petoskey Plastics to develop its Slip-N-Grip seat cover line, Keiswetter said. Ford sought a cover with one surface that could “grip” the seat and remain in place, with the other side of the cover allowing employees to slip easily in and out of the
vehicle.

Dedicated and qualified employees are another major factor in Petoskey Plastics’ success, the company president added.

Press Releases

Petoskey Plastics Gets $1 Million Boost From State of Indiana For New Hartford City Recycling Facility
Zero-Interest Loan Will Help Fund Recycling Equipment, Expand Capacity

PPI announced today that it has signed an agreement with IDEM for the Recycling Promotion and Assistance Fund (RPAF) Attraction Loan. The company will use the RPAF loan to expand production capacity at the new plant for both post-consumer and post-industrial polyethylene film and bag scrap. Additionally, PPI will use the funds to produce an environmentally friendly plastic from renewable resources.

"The Hartford City plant is a key component of Petoskey Plastics' closed loop recycling systems approach that diverts and recycles landfill-bound plastic waste for use in our products," said president and co-founder Paul Keiswetter. "We greatly appreciate IDEM's recognition of the environmental value of this facility through the approval of this loan."

The RPAF Attraction Loan program encourages companies to expand their markets for priority materials in or to Indiana by offering zero-percent loan of up to $1 million for equipment purchases. The loan requires a one-to-one match and must be repaid within a seven-year period. The RPAF was developed to provide loans and grants to promote and assist recycling throughout Indiana by focusing on economic development efforts.

"I applaud PPI's commitment to protecting the environment and its contribution to economic development in Indiana." said Thomas W. Easterly, IDEM commissioner.

Keiswetter said work is progressing on the conversion of the former Overhead Doors facility to the new PPI recycling facility and the company is anticipating an April 1, 2007 opening.