Michigan's Royal Technolologies buying Texas molder Hi-Tech Plastics

By Bill Bregar
Senior Staff Reporter

Published: October 12, 2012 6:00 am ET

Related to this story

Topics Automotive, Consumer Products, Mergers & Acquisitions, Injection Molding

GRAND RAPIDS, MICH. (Oct. 12, 2:05 p.m. ET) — Royal Technologies Corp., a Michigan-based supplier to automotive, office furniture and consumer products markets with about 250 injection molding machines, plans to buy Hi-Tech Plastics Inc., a custom molder in Mission, Texas, near the Mexico border.

Royal added a plant in Alabama three years ago to reach customers in the Southeast. The acquisition of Hi-Tech Plastics — which had worked with Royal Technologies for more than a year on some molding jobs — gives Royal a location next to Mexico, said Royal President and CEO Jim Vander Kolk.

“With the acquisition of Hi-Tech in Mission, Texas, we’ll be better positioned to serve existing customers and to pursue new business with potential customers throughout the region,” Vander Kolk said.

Royal Technologies issued a news release Oct. 10 announcing that the company had signed a letter of intent to acquire Hi-Tech Plastics.

Royal Technologies is buying Hi-Tech Plastics from its founder and CEO, Doug Bennett, who will retire. Terms were not disclosed.

“His decision to retire is basically what led us to acquiring Hi-Tech acquiring High-Tech,” Vander Kolk said in a telephone interview.

Neither company releases sales figures. But Royal Technologies is much larger, with about 250 presses ranging in clamping force from 55 to 1,800 tons and about 900 employees. Hi-Tech runs about 20 presses and employs 90 people, Vander Kolk said.

He said Royal Technologies partners with customers to design parts, and does assembly. Royal also has urethane foam molding operations.

Royal is based in Hudsonville, Mich., where it has three factories. The employee-owned company was founded in 1987.

In 2009, Royal built a factory in Cullman, Ala.

During the past year, Royal Technologies worked together with Hi-Tech Plastics to serve about five customers in the southwestern United States and Mexico, Vander Kolk said. “The alliance has helped us better serve customers in the automotive, furniture and consumer products industries, and we are very excited about how we can grow from here,” he said.

The transaction should be completed by the end of the year.

Bennett founded Hi-Tech Plastics in 1982, and the following year manufacturing began with three employees running two injection molding machines in a rented bus garage in Cambridge, Md.

According a company history, Bennett was instrumental in helping Black & Decker Inc. convert the metal boxes it was using for power tools to plastic boxes. When Black & Decker and other key customers moved their manufacturing to Mexico, and spurred by price pressure from offshore competition, Hi-Tech closed its Maryland plant and moved to the southern tip of Texas in 2006.

Hi-Tech expanded the Mission factory to support Black & Decker’s operations in nearby Reynosa, Mexico.


Comments

Michigan's Royal Technolologies buying Texas molder Hi-Tech Plastics

By Bill Bregar
Senior Staff Reporter

Published: October 12, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Houston Plastic continues to grow with new press, controlled production area

October 1, 2014 11:32 am ET

Custom injection molder Houston Plastic Products Corp. has extended its clamp tonnage range and added an environmentally controlled molding area.    More

Image

German auto supplier Benecke-Kaliko to build second plant in China

October 1, 2014 10:24 am ET

German auto supplier Benecke-Kaliko AG is set to build its second Chinese facility, in Changzhou, to produce surface materials for automotive...    More

Image

RJG buys UK training group G&A

September 30, 2014 11:10 am ET

G&A Moulding Technology Ltd., a United Kingdom-based training and consultancy group, has been bought by RJG Inc., the U.S.-based training business.    More

Image

Ohio molder Denbro Plastics moves to new location

September 29, 2014 6:17 pm ET

Logo products injection molder Denbro Plastics Co. has moved to another plant within Toledo, Ohio, to streamline production and improve efficiency.    More

Image

Japan's parts makers face challenges as carmakers expand supply base

September 29, 2014 11:01 am ET

For all their size and success, Japanese auto suppliers that rocketed to global dominance on the coattails of their No. 1 customer, Toyota Motor Corp....    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

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

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events