M.A. HANNA CO. CONSOLIDATES TO FOCUS ON RUBBER, PLASTICS

M.A. HANNA CO. CONSOLIDATES TO FOCUS ON RUBBER, PLASTICS

M.A. Hanna Co., of Cleveland, Ohio, said it is merging two of its plastics pigments businesses to form an enterprise with seven plants and nearly 350 employees.

The two companies, Allied Color Industries and Avecor Inc., will be headquartered at Allied's offices in Broadview Heights, Ohio.The companies, acquired by Hanna in 1987, manufacture and distribute color and additive concentrates used in making plastic products.

"There's a lot of potential in Hanna to improve profitability and this is a step in that direction," said analyst Saul Ludwig, of Cleveland's Roulston Research Corp.

The merger, which should be completed Jan. 1, should reduce customer overlap, create a stronger sales force and cut overhead, Mr. Ludwig said.

Once a coal and iron ore company, Hanna hit hard times in the back-to-back recessions of the 1980s. It sold its operations and with the money bought a collection of 15 specialty companies.

Allied, with 120 employees, has three facilities in Broadview Heights, Phoenix and Greenville; S.C. Avecor, with 227 employees, has four operations in Vonore, Tenn., North Kansas City, Mo., San Fernando, Calif., and Vancouver, Wash.