Steinwall buys building for just-in-time distribution unit

By Roger Renstrom
Correspondent

Published: December 20, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Injection Molding

COON RAPIDS, MINN. (Dec. 20, 12:25 p.m. ET) — Steinwall Inc. acquired a 65,500-square-foot building in Brooklyn Park, Minn., for its Kanban scheduling system just-in-time distribution department.

Maureen Steinwall, owner and president of the business, said the building is appraised now at $3.2 million for tax purposes. She said a Steinwall entity paid $2.3 million to acquire the Class C industrial structure Dec. 13 from a U.S. operation of Maax Bath Inc. of Lachine, Quebec.

Steinwall expects to finish infrastructure improvements and have the distribution facility operational by March 1.

The Brooklyn Park site is about 15 miles by road from Steinwall’s 100,000-square-foot engineering and manufacturing operation department including custom injection molding in Coon Rapids, Minn.

“I made the decision to split the business last year, but the building we were trying to purchase fell through so we quickly leased space in Elk River,” Minn., Steinwall said. “I then found the ‘new’ [Brooklyn Park] building in September 2012.”

Going forward, the business departmental identities will be Steinwall Distribution in Brooklyn Park and Steinwall Scientific in Coon Rapids.

“Elk River is only 40,000 square feet, and Brooklyn Park is 65,500 so we will have room to grow,” she said. “We have [leased] Elk River through 2013 so we will have time to remodel and move slowly so that we don't upset operations too much.”

Currently, Elk River warehouses raw inventory; Brooklyn Park will have finished inventory.

Then Coon Rapids “will have room to take on more injection molding presses and perhaps prototyping, clean room, testing laboratory or more secondary decorating,” she noted. “We'll see where our customers take us.”

Steinwall split the business into separate business models in part to accommodate customers continuing “to require our inventory management services,” she said. “Manufacturing is a very different business model — processes, procedures etc. — from that of distribution so we shifted everything accordingly.”

Steinwall plans eventually to split the management responsibilities of the two businesses. “I think Steinwall Distribution, when we get really good at it, could be a separate business,” Steinwall said. “My new neighbor was already talking to me about doing their distribution — they would just drive across the parking lot with their paper products and we would ship to their customers when needed — but I told them to hold off until we settle down.”

Currently, Don Blue, vice president of Steinwall Inc. operations, oversees both manufacturing and distribution “so the two of us are managing both sides of the business but ask me in one year,” she said with a smile in anticipation of a retirement date possibly “knocking on my door soon.”

Steinwall Inc. employs 150, has an injection molding press count of 50 including an all-electric Toshiba 85 that became operational in November and, during 2012, acquired eight Yushin robots.

Steinwall purchased the plastics processing company in 1987 from her father, Carl, who initially established a mold-making business in 1965.


Comments

Steinwall buys building for just-in-time distribution unit

By Roger Renstrom
Correspondent

Published: December 20, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Large part molder EnviroTech in 'growth mode,' adds space, equipment

November 26, 2014 9:54 am ET

Salt Lake City-based EnviroTech Molded Products Inc. is adding new equipment and expanding its factory as it gains business in some of its...    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Uni Cap to build cap molding plant in Jordan

November 25, 2014 12:57 pm ET

The Persian Gulf's largest molder of caps and closures is investing $10 million in a new factory near Amman, Jordan, as part of an effort to boost its...    More

Market Reports

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

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

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

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events