What should I check before buying a blow moulding or plastic bottle business?

Blow moulding inflates heated plastic inside a mould to make hollow parts such as bottles, jugs and containers. It is a distinct process from extrusion and injection moulding, with its own machines, moulds and customers. A bottle business is also not the same as a bottle depot, which handles returns rather than manufacturing. These checks suit a buyer looking at a plant that actually makes the containers.

Who owns the moulds

Bottle moulds are usually built for a specific customer’s shape. Ask which moulds belong to the plant and which belong to the customer, and look for that in writing. If the customer owns the mould, it could move the work to another plant. Ask how many moulds are in daily use, which are idle, and who repairs them.

Customers and what they require

Many plants sell to a few fillers in food, beverage and household cleaning. Review the customer list and ask how long each relationship has run and whether any contract allows a change after a sale. Ask which certificates or audit reports customers require, such as food-contact paperwork, and whether the plant keeps them current. Your lawyer can say what applies to your situation.

Resin cost and margins

Resin is a large input, and its cost moves. Read how contracts pass those changes to customers and how long that takes. A lag can squeeze margins for a time. Ask your accountant to help you read the plant’s books alongside what financial records to request, and check inventory on hand.

Space and equipment

Empty bottles are light but bulky, so storage can be a limit on growth. Walk the warehouse and ask about shipping practice, compressed air, cooling and the age of the machines. A qualified technician can inspect the blow moulders and report on their condition before you commit.