The Noma Electric Company had been selling off various subsidiaries during the mid-to-late 1950s. One of its plants was its Holyoke subsidiary, the Holyoke Plastics Corp., located at 178 Sargeant Street, at the corner of Oak Street. Local business interests saw an opportunity in purchasing the factory building and continuing its operation. This is the story of the Holyoke Plastics Company.
On September 8, 1958, papers were passed transferring the Noma Electric Company holding in Holyoke to a newly formed corporation, the Holyoke Plastics Company, Inc. The principals of this new business included George W. Martin, President; Edward Duda, Vice President and General Manager of Manufacturing; Will Adams, Vice President and General Manager of Sales; and Attorney Hugh Corcoran, Treasurer.
Robert K. Steiger, Treasurer, of A. Steiger & Co. department store led the concern that purchased the factory building under Sterac Corporation, and would lease the building to Holyoke Plastics Company. The building was purchased for $60,000, and the machinery and goodwill were purchased for $100,000.
The new owners recognized the potential of pressing vinyl records, which the former owners had included as a facet of their business in February 1958. Approximately 50,000 records were pressed weekly, and the new owners would soon be setting a weekly target of 125,000. The company was fulfilling orders under a contract with United Artists in New York City, as well as three smaller record companies.
One of these smaller companies was Rex Records, a Holyoke-based business owned by Larry Chesky, a well-known polka band leader. The Mater Dolorosa Church choir's Christmas album, Echoes of a Polish Christmas, was pressed at Holyoke Plastic Co. Inc.
The building contained 40,000 square feet of space, allowing for future expansion.
In 1947, the record pressing industry was a $75 million-per-year business, and by 1958, it had grown to $400 million per year. Holyoke Plastics Co. Inc. recognized the growth potential for its business.
The owners also forecast growth in the production of plastic parts and components. The company had executed contracts with American Bosch in Springfield, Epsco in Boston, and Holyoke's General Electric plant.
The present and future were looking favorably on this business. The company had 70 employees at the time of purchase and expected to soon add 15 additional workers.
The company ordered 5 semi-automatic machines, which, combined with its four converted machines, would triple the production of records. Company officials estimated that two-thirds of sales would be vinyl records, and one-third would be plastic parts.
One news article reported that the company was producing the highest-quality vinyl records, as attested to by Monsanto Chemical, which conducted testing.
In an odd twist, after eighteen months, the company sold off its record business in April 1960 to Interdisca and concentrated on producing plastic parts.
In December 1960, Holyoke Plastics Co. received a $250,000 Small Business Administration loan to purchase the building and expand its business. It was indicated that its plastics business was growing at a rate of 20% per annum, and the number of workers would increase by 15 to 20% from its current level of 85 to 100.
In March 1961, the company announced that it had made a profit in 1960, despite lower overall sales, and the sale of its record pressing business.
A year later, in March 1962, the company encountered difficulties with nonpayment of its unemployment tax obligations. By mid-September 1962, four years after the company was formed, its doors were closed, and equipment was sold at a public auction held in April 1963. In July 1963, the factory building was sold to a chemical company.
Citations:
Newspapers.com (paid subscription): Citations: Holyoke (Massachusetts) Transcript & Transcript-Telegram; publication dates and pages are shown.
No comments:
Post a Comment