Engineered Plastic Components Inc. acquires an auto injection molding facility in Scottsburg, Indiana from Viking Plastics
Reza Kargarzadeh, CEO of Engineered Plastic Components Inc., says his company will add more presses to the injection molding facility in Scottsburg, Indiana, just acquired by Viking Plastics.
EPC, based in West Des Moines, Iowa, said the Scottsburg facility makes injection molded interiors.
Officials added that management from both companies “worked closely to ensure this transaction was successful and seamless for their clients.”
Kargarzadeh said the acquisition “will increase our presence and our ability to better serve all of our customers”.
In a phone interview on June 30, Kargarzadeh said that EPC first met with Viking owners Spell Capital earlier this year.
“They marketed that one particular plant,” he added. “We visited and based on our strategy and [the plant’s] We found the location and customer base attractive. “
Viking, based in Corry, Pennsylvania, added six new injection molding machines in Scottsburg last year. Kargarzadeh said EPC plans to add more in the near future.
Viking President Kelly Goodsel said in a phone interview on June 29th that the sale of the Scottsburg plant to EPC was “not a forced situation”.
“The sale worked for both companies,” he added. “It allows us to focus on what we’re doing well.”
Like many automakers, EPC has faced challenges over the past year due to the pandemic and supply chain issues, including a shortage of semiconductors. Kargarzadeh said diversification into other markets such as home appliances, consumer and medical helped EPC weather the storm.
“We make a variety of different custom shapes,” he added. “Now there is a lot of catching up to do in the automotive industry, so hopefully we have overcome the COVID problem and people are ready to get back to work.”
EPC now has 18 locations in North America. The company was involved in several acquisitions, most recently in October from the Japanese Inoac Corp. an injection molding facility in Bessemer, Alabama.
Kargarzadeh said EPC “intends to make acquisitions in certain markets” and the company “intends to expand into the medical field.”
“We will do business that makes sense to us,” he added.
In 2018, Viking acquired the 120,000 square meter Scottsburg plant, which employs 220 people, as part of the acquisition of Genesis Plastics and Engineering LLC. Goodsel said Viking was “still in the market” for further acquisitions.
Prior to the Scottsburg acquisition, EPC was the 33rd largest injection moulder in North America, with annual sales estimated at $ 280 million, according to the latest data from Plastics News. Viking Plastics was ranked 109th with estimated sales of $ 70 million.