Become a digitalPLUS subscriber. 99¢ for 4 weeks.
Business

New Hedwin Corp. owners scout for new sites

Companies and CorporationsBankruptcyEconomic PolicyFinancially Distressed Companies

The new owners of a longtime Baltimore manufacturing company are considering moving operations to a new plant, possibly in Delaware, an executive with the firm said.

The buyers of Hedwin Corp. are looking at sites in Maryland and Delaware, said Maurice LeCompte, an executive with the Hedwin division of Zacros America, Inc. the U.S. unit of the Japanese firm that purchased Hedwin in May. No decision has been made to move from the firm's Medfield plant, LeCompte said.

"If we do make a change, we will certainly announce it," he said. "Other than searching and rumors, nothing's been decided. … Everything is status quo."

Hedwin, which makes plastic containers, saw gross profits decline to $3.4 million in 2013, a fall it said was driven by the increased price of raw materials as well as a June 2013 fire at its plant that hurt operations.

The employee-owned company filed for Chapter 11 bankruptcy protection in April. A Japanese firm with longstanding ties to Hedwin, Fujimori Kogyo Co. Ltd., won the business at a bankruptcy auction in May with a $22.2 million bid, above its $16.5 million pre-bankruptcy offer.

At the time of the auction, Hedwin employed 300 people.

LeCompte said Zacros has not signed a lease or purchased any new property. A spokesman for the Delaware Economic Development Office said the state has provided a general overview to the firm and had no further information.

State and city economic development officials in Maryland did not respond to requests for comment.

"We're planning," LeCompte said, adding that he has spoken to economic development officials in Baltimore City. "Every business does that. Even looking at various sites may stop tomorrow."

nsherman@baltsun.com

Copyright © 2014, The Baltimore Sun
Related Content
Companies and CorporationsBankruptcyEconomic PolicyFinancially Distressed Companies
Comments
Loading