Mitech Plastics Corp. boosted its automotive aftermarket parts business with the acquisition in July of E.T.M. Industries Inc.'s ignition parts assets. Mitech of Welland, Ontario, bought tooling and inventories from the Renfrew, Ontario, firm for undisclosed terms. President Brian Mitchell said the purchase complements his firm's existing aftermarket ignition parts business by expanding its tooling for Ford and GM products and giving it new tools for Chrysler ignition parts.
Mitchell said in a telephone interview that his firm uses thermoplastic injection and thermoset compression presses to make auto parts such as distributor caps and rotors. It also subcontracts auto body components work to custom molders.
Mitech's defense molding business also is growing, according to Mitchell. Its products include rocket nozzles for weapons used in Apache and NATO helicopters and Canada's CF-18 aircraft, and housings for lightweight anti-armor weapons.
Mitchell said defense contracts are cyclical but high-margin work. Ignition parts molding is low-margin but provides a steady business to help offset defense work cycles, he explained.
Mitech moved into a larger plant in Welland late last year and may expand soon into a second plant. Its current 70,000-square-foot facility is crowded but the firm has not decided yet on a location for a second plant. It has 26 presses with clamping forces of 25-500 tons and 65 employees.
Mitchell said Mitech's sales are about C$5 million (US$3.7 million) per year, about 85 percent of which are exports to the United States and Latin America.
