Plastics News - May 20, 2019 - 27

Plastics News, May 20, 2019 * 27

Supplier DaikyoNishikawa opening first US plant
By Audrey LaForest
Plastics News Staff
Japanese auto parts supplier
DaikyoNishikawa Corp. plans to
open its first U.S. plant in Huntsville, Ala., on the site of Mazda
Toyota Manufacturing U.S.A. Inc.
The project represents an investment of approximately $110
million and is expected to create
around 380 jobs.
The facility, operating under
the name DaikyoNishikawa USA
Inc. or DNUS for short, will produce large plastic parts such as
bumpers and instrument panels
for vehicles manufactured at the
Mazda Toyota Manufacturing
U.S.A. (MTMUS) assembly plant.
Construction on the site is
planned for July this year, with
production beginning in 2021 to
coincide with the start of vehicle
production at the MTMUS plant.
"For decades, Alabama has
built strong relationships with
many leading Japanese businesses, and I know that we will
forge a productive, long-lasting
partnership with DaikyoNishikawa," Alabama Gov. Kay Ivey said
in a statement. "We're pleased
that this world-class automotive
supplier has selected our state
for the site of its first U.S. man-

ufacturing facility and look forward to seeing it put down roots
in Sweet Home Alabama, where
so many of our Japanese partners have found success."
According to a May 14 news
release from the governor's office, DNUS is the first on-site
supplier announced for MTMUS,
the joint-venture company of
Mazda Motor Corp. and Toyota
Motor Corp. formed in 2018. The
Japanese automakers are investing $1.6 billion in the assembly
plant to produce up to 150,000
units of a new Mazda crossover
model and 150,000 units of the
Toyota Corolla.
Mazda and Toyota also plan
to jointly develop technologies
for electric vehicles as well as
connected technology and advanced safety systems, among
other complementary products.
The project is expected to create up to 4,000 jobs. Construction on the MTMUS plant began
in November 2018 at the 2,500acre site.
DaikyoNishikawa, based in
Hiroshima, Japan, is publicly
traded on the Tokyo Stock Exchange. It had sales of approximately 184.3 billion yen ($1.68
billion) for fiscal year 2019,
ending March 31. The company

The first steel beam is moved into place for the new Mazda and Toyota assembly plant in Alabama.
Toyota Motor Corp. photo

makes automotive exterior, interior and engine parts such as
rear spoilers, liftgate modules,
door trim and engine covers. It
also molds various housing components including bathtub pans
and gas pipes. DaikyoNishikawa
employs more than 5,000 and
has production sites in Japan,

Mexico, Thailand, Indonesia and
Last month another Japanese
auto parts supplier said it was investing more than $50 million to
open a manufacturing facility in
Athens, Ala., about 30 miles west
of Huntsville. Toyota Boshoku
Corp., a member of the Toyota

group of companies, said it would
produce seat systems for vehicles
built at MTMUS.
A spokeswoman for Toyota
Boshoku told Plastics News in an
April 18 email that the manufacturing process had not been finalized and therefore was unable to
provide additional comment.

Florida state ban on straw laws vetoed by governor
By Steve Toloken
Plastics News Staff
Newly elected Florida Gov.
Ron DeSantis, in his first veto,
struck down a bill May 10 that
would have prevented local governments from banning plastic
straws for five years.
In siding with cities that want
to restrict plastic straws, DeSantis, a Republican, noted that Florida communities, including Sanibel, Fort Myers Beach and Miami
Beach, had already taken action
to prohibit plastic straws.
"These measures have not, as
far as I can tell, frustrated any
state policy or harmed the state's
interests," DeSantis wrote in a
letter accompanying his veto.
"In fact, the Florida Department
of Environmental Protection has

Continued from Page 3
Batavia, Ohio. Milacron is closing
its European manufacturing operation in the Czech Republic.
Brian Marston, currently president of blow molding and extrusion at Milacron, will lead the new
Uniloy organization as president

encouraged Florida residents,
schools and businesses to reduce plastic straw use.
"Under these circumstances,
the state should simply allow local communities to address this
issue through the political process," he wrote. "Citizens who
oppose plastic straw ordinances
can seek recourse by electing
people who share their views."
The governor's veto letter
said the legislation originally addressed issues with contamination of recyclable materials, but
the provision dealing with plastic
straws was added later. It prevented local governments from
banning plastic straws until 2024.
City officials in Sanibel applauded the veto and noted its
local ordinance included a provision allowing for straws for the

disabled, a concern mentioned
by opponents of straw bans. In a
May 7 letter, Sanibel Mayor Kevin Ruane had urged DeSantis to
reject the bill and noted it would
overturn Sanibel's plastic straw
ban, which had passed in September.
Florida state Rep. Ben Diamond, D-St. Petersburg, tweeted that the governor's veto was
"a victory for home rule and for
cities like @StPeteFL that have
taken action to protect our environment."
The bill banning local bans had
passed Florida's Republican controlled state legislature by comfortable margins in late April.
The state's House adopted it 8723 on April 25, and the state Senate passed it 24-15 five days later.
DeSantis' veto is the latest ac-

tion in a topic that's been hotly debated in state legislatures
around the country this year.
Three states - North Dakota,
Oklahoma and Tennessee -
passed laws preventing cities
from regulating plastic and other packaging, arguing that local
bans raise costs and that one
state's law is better than a patchwork of local ordinances.
But measures to do so in South
Carolina and Alabama met strong
resistance from city councils and
have stalled in those states for
The Florida Legislature's analysis attached to the bill said 10
Florida towns and cities, including St. Petersburg and Fort Lauderdale, had taken action against
plastic straws and noted businesses such as Sea World and

Alaska Airlines had taken similar
But it also said that paper
straws, while biodegradable, also
have environmental impacts and
cost 2.5 cents compared with 0.5
cents for plastic straws.
It also noted U.S. Environmental Protection Agency statistics
that said two-thirds of the marine
debris found in beach cleanups
and surveys were single-use disposable plastic packaging from
food and beverage service.
Florida already has separate
state laws banning local governments from regulating plastic
bags, according to the National
Conference of State Legislatures,
and preventing local governments from banning expanded
polystyrene foam packaging, according to Florida news reports.

and CEO. He has held leadership
positions within the plastics and
blow molding industry for 35
years, Milacron said.
Osgood Capital President Joseph S. Levy served as managing
director of private equity firm
First Atlantic Capital Ltd., which
bought Berry Plastics Corp. in
1990, and helped build Berry into
a packaging giant. Later, Levy be-

came a member of Berry's board
of directors.
In the news release announcing
the Uniloy deal, Levy said: "We
are excited to have this opportunity to work with the outstanding
Uniloy management team led by
Brian. We expect to deliver worldclass service and solutions for
all our customers' blow molding
needs as well as strong growth in

global Uniloy brands for years to
Marston said Uniloy will
"continue to provide the same
technical expertise and aftermarket support that our customers
have experience since the 1960s."
Marston said the new owners
will work with Milacron to make
the transaction seamless.

Cleveland-based Cyprium Investment Partners' past plastics-related investments include
MGS Manufacturing Group Inc.
Cyprium invested in the Germantown, Wis.-based MGS in 2012
through a subordinated debt investment.
MGS has been owned by Mason
Wells, a Milwaukee private equity
firm, since mid-2016.

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Plastics News - May 20, 2019

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