Petoskey Plastics Makes Its Sustainability Case

Northern Michigan plastics manufacturer Petoskey Plastics Inc. recently hosted state and local economic development and elected officials to show them how the company produces polyethylene plastic bags and film using recycled materials.

Petoskey Plastics Inc., Petoskey, Mich., makes a broad range of products including automotive seat covers, paper floor mats, steering wheel covers and consumer products such as compactor bags, carryout bags, re-closeable deli bags and private-label trash bags.

Founded in 1969 with five employees, the privately held company has grown from $74,000 to $60 million in annual sales, and now employs 265 people. In addition to its original plant in Petoskey, the company has manufacturing facilities in Tennessee and Indiana, plus a sales office in Birmingham, Mich. and a sourcing office in Shanghai, China.

In addition to its focus on growth, the company says visiting officials were also impressed with Petoskey’s sustainable manufacturing processes in an industry that is dependent on petroleum products. The company is emphasizing its “closed loop recycling systems” approach that diverts and recycles landfill-bound plastic scrap for use in its products.

Paul Keiswetter, Petoskey Plastics president and founder, is an early post-consumer plastic bag recycling innovator and a staunch advocate of the “closed loop recycling systems” approach. “The idea is to divert landfill-bound plastic waste here in Michigan for reuse in our products that are in turn consumed in Michigan,” says Keiswetter, a Marine Corps veteran.

“Our goal is to include recycled materials to the greatest extent possible, whenever possible, in our products,” he adds. “It’s good for the environment and good for business because it reduces our cost.”

Keiswetter says the company is in the midst of an aggressive push to increase the volume of recycled materials it collects for processing. In 2006, it purchased a 280,000 sq. ft. facility in Hartford City, Ind., to expand its post-consumer and industrial recycling operations.

Keiswetter expects to invest more than $8 million converting the former overhead door plant for this use, including installing state-of-the-art recycling equipment. “We will also relocate upgraded equipment from our Petoskey facility, so when completed, the Hartford City facility will have tremendous capabilities.”

Furthering its efforts in sustainable manufacturing, the company is experimenting with emerging technology that would allow it to produce more plastic made from recycled materials.

Following a tour of the facility, the economic development group met with the Petoskey Plastics executive team to discuss local and state resources that could support the company’s momentum.

State Representative Gary McDowell presented Keiswetter with a plaque from the State of Michigan recognizing its growth. “Petoskey Plastics is an outstanding example of the kind of innovative, high-growth businesses that our state needs,” McDowell remarked.