The Mexican business PlastiExports acquires the shot molding plant in Tennessee as it has its eye on development in the U.S.A.
Mexico City – The custom injection moulder PlastiExports SA de CV from Apodaca, Mexico, has acquired its first US injection molding plant.
PlastiExports acquired the Morrill Motors Inc. manufacturing facility in Erwin, Tennessee from Regal Beloit Corp. Bought. According to Operations Director JP Metcalf, the facility went into operation on June 1st as PlastiExports Tennessee LLC.
The deal includes 61,000 square feet of manufacturing space, 22 injection presses and 10 acres of adjoining land for future expansion, Metcalf said.
In a telephone interview, he said the Mexican owners are investing heavily in upgrading the facility, which was due to close in September, a year after Regal Beloit announced its closure.
Closing the plant would have put 130 people out of work in Erwin, a town of 6,000 on the Appalachian Trail. Metcalf said PlastiExports’ “plan right now” is to employ up to 125 people in eight to 12 months.
“We load this system with 50 presses with a clamping force range of 50-750 tons. … We are planning a standardization [the presses] with JSW technology, “said Metcalf.
About 70 percent of jobs at Morrill Motors were in injection molding, said Metcalf, who worked for Morrill for 28 years.
Metcalf declined to confirm local news that PlastiExports paid $ 7 million for the acquisition, but added that the company plans to “invest well over $ 7 million and expand the US business “.
He added that the company will diversify its base of 15 to 22 customers from segments such as engines, ATVs, home appliances and automobiles.
“We’re already doing some medical research and planning to develop a clean room,” he said, adding that it “will follow exactly the way PlastiExports is set up in Mexico.”