Modern Plastic Magazine by Matthew Defosse July 2000 ISSUE
BLOWN FILM STRATEGIES
At Apollo, flexibility reaches new heights

At Apollo Plastic Corp., Jersey City, NJ, there is no limit to the length the processor will go to improve its business. To bolster competitiveness, Apollo raised the roof of its facility of the past 30 years to make room for the cooling tower of a new line.
Such flexibility and practical thinking have been the watchwords for Ray Glenn, president during his 15 years at the helm. This flexibility extends to the types of jobs the firm is willing to accept. "I like being able to take on smaller jobs, too," he says, noting many processors pass on these lucrative opportunities.
His machine stable includes a mix of 16 blown film lines, some older, some new, the latest a 94-in-wide system from Battenfeld Gloucester installed earlier this year. Glenn had the roof raised 17 Ft to accommodate the cooling tower on this line. "My feeling is the only way I can continue to compete is with newer better equipment," he says. The new machines provide the output and top-grade film necessary for him to win contracts where quantity and quality are prerequisites, and the older machines allow him to economically take on those smaller orders. Apollo processes shrink film bags for furniture and mattresses; converting, coating and laminating films; drums and box liners; printed bags; and other monolayer applications.
Apollo's customer base includes manufacturers across the eastern U.S. "Everything I sell goes to other industrial users," he notes. The firm has not gotten involved in multilayer processing because, he says, there are plenty of others doing it and he sees no end to the single-layer films. "As long as there is a consistent and growing need for our films, then we have not filled our market," he explains. There are also a number of practical reasons to consider. Multilayer lines require more floor space, increased research and development, and a larger storage area for multiple materials, all assets not readily at hand. "I am growing within my means," he quips. For strategic and practical reasons, Glenn avoids

Ray Glenn says investment in the latest machine technology enables in to vie in high-end applications.

secondary operations in his projects, conducting all work in-line. In-line processing allows Glenn to start and finish work in one operation, a means to simplify the job-planning process. Additionally, in-line processing is a space saver; no secondary operations means no need to find room in the compact facility for those operations.
A family affair. Glenn learned the business from his father, Henry Glenn and uncle David Glenn, brothers who founded the company in 1966. During his high school summers and holidays he worked at the firm. Though he now runs the daily operations, his father still serves as CEO and brings his experience and technical expertise to the operation. "His passion is this business," says the younger Glenn. "This is his life; he has no intention of retiring."
Although Glenn has help from his father, and has a sales vp., production scheduler, and plant manager on staff, he takes responsibility for the plant, equipment and polymer purchasing, R&D, and all personnel dealings. He enjoys the people aspect of the business and says one goal is establishing an in-house employee training program to improve efficiency by increasing process knowledge. Apollo operates 4 shifts, 24/7, with employees rotating between three 12-hr shifts or four 12-hr shifts per week. Glenn says the plant


operates 350 days/yr.
While the firm has benefited from the ongoing bull economy in the U.S., one threat is rising and erratic polymer prices. LLDPE is Apollo's "bread-and-butter" though LDPE and some HDPE grades also are processed. Prices over the last year have jumped ever higher, he notes, and small to medium processors have neither the manpower nor space to plan and conduct long term purchasing and polymer storage. "Resin pricing volatility has truly affected our profitability," he admits, and reckons the same is true for most of his small to medium-sized brethren.
Either plastic prices have to go down, he says, or processors must seize the initiative and raise the price of their products. "But right now I do not see many processors willing to take that chance [of raising prices]," he notes, though he maintains the smaller processors would follow if larger processors took the lead. " These larger processors need to take a leadership role in the industry," he says.
While polymer pricing is out of his control, he focuses attention on the more immediate goal of finding orders to fill all the firms capacity. Once that is achieved, it may be time to consider adding more floor space or even searching for a new facility. Glenn says he plans on sticking with his current business-building formula as long as it remains successful. "I plan grow this business under the same tenets I've operated with for the past 15 years."

VITAL SIGNS
1999 sales: Disclosure
1999 profits: Disclosure
Number of Lines: 16
Production output: 34 million lb/yr
Employees: 60
Products: Monolayer films for industrial packaging; shrink film; drum, box and gaylord liners; converting, coating and laminating films
Management: Henry Glenn, CEO; Ray Glenn, president
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