COLLOIDS
Mbo: Directors join with Ravago and Kafrit / Concentration on speciality masterbatches
Two international compounding businesses, Ravago Plastics (Poederstraat 30, B-2370 Aerendonk) and the Israeli company Kafrit Industries (Kibbutz Kfar-Aza, M.P. Negev 85142, Israel), have formed a new 50:50 joint venture, Kafrit International, and bought a half share of UK masterbatch manufacturer, Colloids (Dennis Road, Widnes, GB-WA8 OSL Cheshire). The other half of Colloids has been acquired in a mangement buy-out by four of its previous directors. The deal, for an undisclosed sum, is subject to shareholder approval.

Colloids is a GBP 14-15m turnover business employing 100 staff which has operated from two sites. The new owners plan to cease manufacture of black and white masterbatches, which will see the closure of the Widnes plant. All production will be transferred to the Runcorn site, located just 5km from Widnes and home for Colloids´ colour manufacturing operation. Further space has been acquired at Runcorn and additional compounding equipment will be purchased so as to focus the business on speciality masterbatch production.

Commenting on the change of ownership, managing director, John Dilley says, “With the resources of Kafrit, who themselves are one of the most technically advanced masterbatch producers worldwide, the business has an opportunity to restructure and move forward positively.”

Apart from the benefits of technical support from Kafrit, which has particular expertise in flame retardant masterbatches, Colloids is likely to gain additional sales and marketing opportunities as Ravago owns the UK materials distributor Resin Express (11 The Valley Centre, High Wycombe, GB-HP13 6EQ Buckinghamshire), which numbers companies such as Dow, Du Pont, Ato and Solvay among its suppliers. A second UK company in the Ravago stable is compounder/distributor Yardley Plastics (Caddick Road, Knowsley Industrial Park South, Prescot, GB-Merseyside L34 9HP).

In addition to switching away from black and white to other colours of concentrate and technical masterbatches, Colloids intends to improve customer service levels. “Whilst Colloids´ customers will benefit from having access to one of the most advanced ranges of technical and speciality masterbatch products currently available,” says Dilley, “it will be of a size where service levels are not compromised.”

Ravago´s business has a turnover of GBP 500m, which, in addition to compounding and distribution, incorporates a polymer recycling operation. Outside of the UK, the distribution activities operate under the Resinex tradename, some of which include flame retardant masterbatches from Kafrit in their portfolio.

Based in Negev, Kafrit is a public company quoted on the Tel Aviv stock exchange specialising in compound and masterbatch production. It has a turnover of GBP 40m. The joint venture with Ravago to create Kafrit International was only formed this year and will now be used to explore other possible areas of co-operation.
31.05.2000 Plasteurope.com [17361]
Published on 31.05.2000

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