Sapona Plastics to buy old Luck's plant
February 14, 2017
SEAGROVE — The old Luck’s Beans plant in Seagrove is in the process of getting a new owner. Sapona Plastics hopes to close on the sale by the end of February.
The property had been owned by a start-up business, PetPro, which has been in bankruptcy for the past two years.
There are two buildings on the property, which is located at 798 N.C. 705 in Seagrove. The sale includes both, but Sapona Plastics will use the upper building, which is 90,000 square feet in size. There are no short-term plans for the lower one.
Sapona Plastics President Dean Lail explained that his company has already been leasing 50,000 square feet of space for warehouse and distribution operations. When renovations are complete, he expects that half of the building will be used for manufacturing, with the other half to remain as warehouse and distribution.
Two different products will be made at the Seagrove plant.
A printing operation will be installed which will print NBA, NFL and collegiate logos on plastic bathroom accessories, such as waste baskets, drinking glasses, soap containers and tooth brushes. The plant will also produce plastic barbecue brushes. All items are sold at Walmart.
The reason that Sapona Plastics is expanding to Seagrove is because the current plant, located north of Asheboro, is out of space. Lail said that the company grew 23 percent last year.
While his company is picking up the tab to buy the Seagrove property and install $720,000 worth of new equipment, necessary renovations must be made before it can be fully used.
Kevin Franklin, vice president of the Randolph County Economic Development Corp., spoke to members of the Seagrove Town Board about the project during the commissioners’ meeting on Feb. 7.
Sapona Plastics is seeking financial assistance to complete renovations in the upper building, which is located within the Seagrove town limits.
Franklin outlined renovations that will include $65,000 to upgrade the sprinkler system for plastics storage, $65,000 for heating and air-conditioning, $60,000 for repairs and remodeling, $25,000 for new lighting, $40,000 for electrical installation and repairs, and $250,000 to replace the roof and make drainage repairs. The total cost of the renovations will exceed $500,000.
The company is working with the EDC to apply for a Building Reuse Grant from the N.C. Department of Commerce to help pay for the necessary $505,000 in building renovations.
Source: Courier Tribune