Compounder RheTech targets automotive

By Frank Esposito
Senior Staff Reporter

Published: May 1, 2012 6:00 am ET

Related to this story

Topics Automotive, Materials, Suppliers, NPE 2012

ORLANDO, FLA. (May 1, 3:20 p.m. ET) — Compounder RheTech Inc. is finding success with its RheVision brand of bio-based compounds, and is considering adding a new extrusion line at its plant in Whitmore Lake, Mich.

RheVision can use a wide range of biowaste materials, including pine and maple wood, rice hulls, coconut, flax and agave fibers, strategic growth Vice President James Preston said at NPE2012 in Orlando. Biowaste content can be as high as 50 percent, depending on the individual application, he said.

To date, RheVision has been centered on consumer applications such as dog-food dishes, bird feeders and fencing. Whitmore Lake-based RheTech is working to get the material into automotive applications as well.

The new line in Whitmore Lake would replace an older line, which would then be shut down, Preston said.

RheTech’s plant in Blacksburg, S.C., is running well a year after opening its doors, he added. The plant specializes in compounding nylon, acetal and other engineering resins used in automotive under-hood parts, as well as in parts used in all-terrain vehicles and Sea-Doo water vehicles.

RheTech still does about 85 percent of its work in compounds based on polypropylene. The extreme price volatility of that material has been a challenge for the firm, Preston said. “It’s an industrywide problem,” he said of PP volatility. “You can’t get a yearlong [pricing] contract — it’s hard to even get one for a quarter.”

Overall, RheTech saw sales growth of 20 percent in 2011, and Preston said the firm should be able to match that rate this year. RheTech employs 150 and has annual sales of about $100 million. The firm generates about 65 percent of its business from the auto market.


Comments

Compounder RheTech targets automotive

By Frank Esposito
Senior Staff Reporter

Published: May 1, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Private equity firm buys majority share of truck accessory maker

July 31, 2014 10:30 am ET

A majority share of Ann Arbor, Mich.-based truck accessory manufacturer Tectum Holdings Inc. has been acquired by Boston-based private equity firm TA ...    More

Image

UMass Lowell hosts collaborative research meeting for future projects

July 30, 2014 11:54 am ET

The University of Massachusetts at Lowell recently hosted a seminar, which was billed as a collaborative research meeting between Dow Chemical Co.,...    More

Image

North American robot sales set record

July 30, 2014 4:46 pm ET

The North American robotics sector is off to its fastest start ever, shattering last year's first-half record, with a first-half 2014 of 14,135...    More

Image

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Red Wave machine helps sort 4,000 metric tons of mixed plastics recycling

July 30, 2014 11:00 am ET

Redwave, the Austrian manufacturer of optical sorting machines for recycled plastics, supplied a line for the IMOG sorting facility in South West Flan...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

January 14, 2015 - January 14, 2015Plastics in Automotive

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

More Events