Plastic Pipe Manufacturer JM Eagle Lands in Los Angeles

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The world’s largest plastic pipe manufacturer last week said it will move its corporate headquarters to Los Angeles as part of a new strategy to get closer to its Asian suppliers.


JM Eagle, based in Livingston, N.J., will be moving into offices at 5200 Century Blvd., near Los Angeles International Airport. It also plans to consolidate its call center in the building.


The company would not say how many jobs it will bring to the Los Angeles area but did promise no jobs will be eliminated as a result of the move, which should be complete by June 2008.


JM Eagle makes PVC and high-density polyethylene pipe for plumbing, construction, water and other uses.


The 10-story 5200 Century Blvd. building sold for $63 million last year to JM Manufacturing Co. Inc., which has since merged with PW Eagle Inc. to create JM Eagle.


The $63 million price tag worked out to about $200 per foot, the most for any building in the area. JM Eagle also looked at properties in the South Bay, Burbank and other communities before deciding on locating next to the airport.



English Steel

With about 40 acquisitions under its belt since the mid-1990s, the announcement last week by Reliance Steel & Aluminum Co. that they bought another company might not raise many eyebrows. But this one is a bit different than some others.


The Los Angeles metal manufacturer’s purchase of Birmingham, England-based Metalweb PLC is Reliance’s first foray the United Kingdom market. This move diverges from the company’s recent trend of buying companies in areas where Reliance already had an established presence, as it did with the July purchase of Wood Dale, Ill.-based Clayton Metals Inc.


Metalweb, which has service centers across England, specializes in aluminum processing for the aerospace and engineering industries. The company had sales of $53 million last year.


“This transaction will bring an additional global presence to Reliance and its first metals service center in the United Kingdom with a highly skilled and knowledgeable management team that is eager to continue to grow both within the U.K. and beyond,” Chief Executive David Hannah said in a statement.


Reliance has a presence in Canada, Belgium, China and South Korea. Shares of Reliance stock took a tumble in the summer months after the company forecast reduced third-quarter earnings.



Aircraft, Missile Deals

The county’s oldest company is continuing its recent growth trend with the announcement of several new contracts.


Carson aerospace manufacturer Ducommun Inc. won contracts totaling $28 million from Latecoere International Inc., a subsidiary of Toulouse, France-based Latecoere SA, to build fuselage and door skins for commercial aircraft. Ducommun also said its technology division won a $4.8 million contract to provide support for missile and space programs for the Defense Department’s Missile Defense Agency.


The aircraft deals, which include a continuation on a previous contract as well as a new contract, are for work on the Embraer ERJ 170 and 190 planes.


“We look forward to using this contract win as a springboard for other component and assembly work for both Latecoere and Embraer,” Chief Executive Joseph Berenato said in a statement.


Ducommun, which recorded revenue of $348 million last year, has grown more than 500 percent since Berenato joined the company in the mid-1990s.



Bags Chief

Hilex Poly Co. LLC, a subsidiary of Los Angeles plastic bag manufacturer HPC Industries Inc., announced this month that David Pastrich has been named chief executive.


Pastrich, who has worked in the flexible packaging industry for two decades, came to Hilex Poly from Montreal-based Alcan Inc., where he served as vice president of the Label Business Unit.


Hilex Poly, which has manufacturing facilities across the country, produces a variety of bags and plastic film products. The industry is in the midst of a transition toward environmentally friendly products amid criticism of throw-away supermarket bags and has recently launched new “green” initiatives.



Aid to Medicare

A couple of local companies are among the winners of a series of government contracts worth as much as $4 billion in total.


Los Angeles defense contractor Northrop Grumman Corp. and El Segundo information technology company Computer Sciences Corp. are among 16 companies that will help upgrade the computer system for the agency that runs Medicare. Details of the contracts were not disclosed.



Staff reporter Richard Clough can be reached at (323) 549-5225, ext. 251, or at [email protected].

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