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 Mergers & Acquisitions, Automotive, Consumer Products, 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

Cambro investing $30.4 million in new N.C. injection molding plant

April 18, 2014 2:36 pm ET

Foodservice products manufacturer Cambro Manufacturing Co. Inc. plans to set up a satellite production and distribution operation in Mebane, N.C., to ...    More

Image

Increased orders prompt Georg Utz to add capacity, equipment in Indiana

April 18, 2014 12:20 pm ET

Plastic totes and tray orders have picked up to the point where manufacturer Georg Utz Inc. has added machines, silos and material feed systems to...    More

Image

Ascend targets nylon for auto applications, opening propylene monomer unit in Texas

April 18, 2014 10:57 am ET

Materials firm Ascend Performance Materials Inc. is in full operation at its new nylon 6/6 compounding line in Florida and will break ground by the...    More

PolyQuest spins off FiberQuest unit

April 18, 2014 10:14 am ET

PolyQuest Inc. has spun off its FiberQuest unit — which distributes polyester staple fibers and cotton — as a separate company.    More

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events