CPAC finishes buying manufacturing assets from Konica Minolta
CPAC Inc has completed the purchase of certain photochemical manufacturing assets from Konica Minolta Photochem Thailand, effective October 17.
Under the terms of the agreement, CPAC will operate Konica Minolta's photochemical production and distribution facility in Sri Racha until December 31. After that date, the operation will be transferred to the CPAC Asia Imaging Products Ltd (CPAC Asia) facility near Bangkok. To accommodate the new volume, CPAC Asia will add approximately 20,000 square feet (1,860sqm) of space to its existing facility, more than doubling its warehouse capacity. In January this year, Steven Baune, president of CPAC Imaging Worldwide, said Konica Minolta Photo Imaging (KMPI) had announced it would exit the photo-imaging business on a worldwide basis by March 2007. Because of the company's longstanding manufacturing relationship with Konica, the company entered into discussions with KMPI management to assist with their transition out of the business. During this period, Konica has ensured that all of its customers continue to receive quality products and services. The agreement permits CPAC to manufacture and sell Konica Minolta-branded finished goods until March 31, 2007, ensuring that existing customers will experience no disruption in the supply of products. After this period, CPAC will convert the brand from Konica Minolta to Sentry, Baune said. Stan Gulbin, president of CPAC Asia, said the agreement comes with multiple benefits for CPAC Imaging. The company will gain access to several new markets in Asia, the Middle East and Africa, and anticipates doubling production volume in Thailand when the move is completed in January 2007. In addition, CPAC Asia has secured tax incentives from the government to offset capital investments, enabling the company to consolidate the Konica Minolta volume with minimal impact to cash flow, Gulbin said. CPAC Inc was established in 1969. The company manages holdings in two industries. The Fuller Brands segment manufactures commercial, industrial and household-cleaning products, as well as custom brushes and personal care lines. The CPAC Imaging segment develops and markets imaging chemicals, equipment and supplies at seven operations worldwide. Products are sold under more than 350 registered trademarks.
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