Dynacast Inc. and Bace Manufacturing Inc. have merged their plastics businesses to create a new company with annual sales of about $185 million. That figure could place the firm, SPM Inc., among the 10 largest injection molders in North America, based on Plastics ' data.
Dynacast's parent, Coats Viyella plc of Alcester, England, purchased Bace for 65 million (about $102.9 million) Feb. 18, according to Michael Noggle, new president of SPM, based in Anaheim, Calif.
Noggle was chief executive officer of Bace, also in Anaheim.
Dynacast of Yorktown Heights, N.Y., makes precision die-cast metal and injection molded plastics parts, and magnets, at 31 plants around the world. It employs 2,200.
Dynacast's five North American injection molding plants, now part of SPM, project sales of $45 million to $48 million for 1995.
Bace brings six injection molding plants, already operating under the SPM banner, to the merger, and its $20 million subsidiary Micro Power Electronics, which designs and assembles rechargeable battery packs for cellular phones, computers and data terminals. Bace, which had 1994 sales of $110 million, expected 1995 sales of $145 million to $150 million.
Together those operations employ about 1,500 and run 340 presses, mainly Toshibas and Van Dorn Demags, with clamping forces of 22-1,500 tons.
As president, Noggle is charged with consolidating the newly merged firm for Dynacast in North America and, in the longer term, with expanding the business globally.
Noggle said he is excited about the opportunities the merger presents for everyone, in-cluding the companies' customers.
``Many of those customers are global customers,'' Noggle said. ``And we fully intend to do the same thing with the plastics operations that Dynacast has done with die casting.*...*The SPM name will be carried forward around the globe in plastics.
``But the initial emphasis is going to be on the integration of the groups we have now,'' he said.
Former Bace executive Chuck Finkbiner, now senior vice president of business development for SPM, calls it all part of the company's plan in building vertical integration.
Dynacast, which molds smaller, close-tolerance parts for a variety of original equipment manufacturers, will gain Bace's capability for complex subassembly and larger components, Keith Thompson, president of Dynacast North America, said in a news release.
And, Noggle said, with Dynacast's capabilities, SPM can fill the plastics, battery and die-casting requirements of some of its larger accounts.
More than just a molder, Bace was a true custom manufacturer, said Dan Schunemann, manager of human resources for Dynacast North America. The integration of technology to make both metals and plastics components enhances that position, he said in a Feb. 23 telephoneinterview.
The firms shared a similar customer base. Among SPM's customers are AT&T, IBM, Sony Corp. of America, Casio Corp., Compaq Computer Corp., Northern Telecom Ltd. and Ford Motor Co.
SPM has secured its first Tier 1 work, with Ford, molding a bezel for a one-piece radio/climate control for the 1996 model year Taurus and Sable. SPM will make the in-mold decorated part, along with all its associated plastic components, at Anaheim, Noggle said. For the past 10 years, SPM has been a second-tier supplier to Big Three auto-makers, molding decorative parts and close-tolerance, under-the-hood components, Finkbiner said.
SPM's 715,000 square feet of molding space comprises Dynacast plants in El Paso, Texas; Minneapolis; Hickory, N.C.; Seneca, S.C.; and Arecibo, Puerto Rico; and Bace/SPM plants in Anaheim and Fremont, Calif.; Hillsboro, Ore.; Houston; Denver; and Calgary, Alberta.
Five of the 11 plants are registered as ISO 9002, but all will be certified by year's end, Noggle said. SPM Micro Power's plants in Beaverton, Ore., and Scottsdale, Ariz., will attain ISO 9001 for design in 1995, according to Finkbiner.
A clean room in Fremont does projects for a number of medical customers. Other SPM processes and services include structural foam and gas counter-pressure molding, toolmaking and design, and painting and shielding.
Most of the firm's presses are equipped with robots, Noggle said.
``Putting a robot on a machine does a lot for quality. But, we've continued to grow the number of employees at all of our facilities,'' he said.
Other SPM team members are Larry Noggle, executive vice president; Steve Martindale, vice president of finance; and Jim Fitzpatrick, who will continue to manage molding operations at the five Dynacast plants. Michael and Larry Noggle and Finkbiner held the majority interest in privately held Bace.
``The experience and proven abilities [of SPM senior management] are vital to our future plans,'' said David Speirs, CEO of Dynacast International Ltd., in Alcester.
Plastics News reported Dynacast's North American sales at more than $220 million for 1994.