Tessy targets medical with $4.8 million expansion

Mike Verespej

Published: February 1, 2012 6:00 am ET

Related to this story

Topics Consumer Products, Medical, Injection Molding

LYNCHBURG, VA. (Feb. 1, 3:55 p.m. ET) — Tessy Plastics LLC is expanding its Lynchburg plant by nearly 50 percent to take aim at the medical disposables market and so that it has more capacity to grow the other parts of its business.

“The primary reason for the expansion is that we had a need for an expansion,” said President Ken Beck in a phone interview Feb. 1. “It is not entirely for medical capacity. It has a lot to do with future capacity and with future growth. We were operating at 100 percent capacity.”

Just 10 months ago, the 60,000-square-foot plant was operating at 65 percent capacity.

Beck said he expects the 26,000-square-foot, $4.8 million expansion to be completed by the end of May. “The expansion is primarily for a Class 100,000 clean room,” he said. “It will have a minimum of 10 machines, ranging in size from 80-250 tons,” pushing the number of injection molding machines at the plant to above 50.

Currently, consumer products account for the majority of company revenues. The medical business accounts for 25-30 percent of its revenues, a sizable jump from 10 percent last April.

Long-range, Beck said the company would like medical disposables to be 50 percent of its business. “Medical is growing,” he said.

But he added that the expansion initially won’t be just for medical business. “If we have a customer that needs five machines to make its products, for example, we can do that.”

Beck said the expansion will create 60 jobs over the next few years and it is possible the expanded space could be operating at full capacity “in as soon as a year.”

“We are on 14 acres here,” said Beck. “We still have additional space. Even after the expansion we could nearly double in size to 140,000 to 150,000 square feet.”

Beck emphasized that the company chose to expand in Lynchburg and not China or New York State, where its parent company is headquartered, because of the quality of its current 150-person workforce in Lynchburg.

“We could have expanded anywhere,” said Beck. “But the quality of the employees we have here is awesome.”

 Tessy Plastics LLC’s parent firm is Tessy Plastics Corp. in Elbridge, N.Y., whose president is Ken Beck’s older brother, Roland. Their father and two others founded the company 39 years ago in Elbridge.

Tessy Plastics LLC, which was founded in 1997 in Lynchburg, makes aerospace components; parts for leaf-blower backpacks; housings for string trimmers; parts for air tanks used by firefighters; and housings, heads, nozzles, caps and valves for vacuum cleaners.

It also makes components for night-vision systems, handgun grips and casings, insulin pumps and syringes, private radio systems, parts for tire-pressure sensors, and internal components for desktop printers.

The plant currently has a dedicated Class 100,000 medical clean room, but after the expansion, all clean room manufacturing will be done in the larger expanded space, Ken Beck said.

Half of its current injection molding machines are all-electric and range in size from 40-720 tons, he said. All of the new machines that will be purchased for the expansion will be all-electric.

“I look forward to investing in our future to make us a stronger, more efficient company, which will help us stay competitive in a global market,” said Beck.

Virginia Gov. Bob McDonnell approved a $150,000 grant from the Governor’s Opportunity Fund that was matched by the city of Lynchburg for the project.


Comments

Tessy targets medical with $4.8 million expansion

Mike Verespej

Published: February 1, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

RxFiber developing new generation of medical fibers

July 23, 2014 1:38 pm ET

Increased concern about patient safety is creating a business opportunity for biomaterial fibers maker RxFiber LLC.    More

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Infiltrator goes very large scale for injection press

July 18, 2014 1:45 pm ET

Infiltrator Systems Inc. has designed and built a mammoth injection press, with 6,000 tons of clamping force, to mold septic tank halves measuring 15 ...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events