Van Dorn Demag Corp. an-nounced April 2 that it finalized the purchase of Newbury Indus-tries Inc., in a deal involving two Ohio manufacturers of injection molding machines. The deal comes after several months of negotiations. It gives Van Dorn Demag of Strongsville, Ohio, an immediate impact in vertical injection presses used for insert molding in markets such as automotive, connectors, appliance and medical.
Buying Newbury means that Van Dorn Demag will be more competitive against Cincinnati Milacron Inc., which has a 2-year-old agreement with Autojectors Inc. of Albion, Ind., to make vertical presses under Milacron's name.
Van Dorn Demag intends to retain the Newbury name, which dates to 1957 when Glenn Frohring founded the company. Within the next month, Van Dorn Demag expects to announce a decision on whether the new owners will continue to run the Newbury factory or relocate production to Van Dorn Demag facilities, according to spokeswoman Patrice Aylward.
Asked about the future of the Newbury plant, she said: ``There's just nothing to say now. We just really need to get in there and take a good look.''
Newbury Industries' 76 em-ployees were informed of the sale, and the time frame for a decision on production at Newbury, at a meeting at the plant April 2, before the news was announced.
The plant can produce 420 machines a year. There are more than 12,000 Newbury presses in operation.
Aylward said the fate of the Newbury plant hinges on a number of factors, including production volumes, capacity and manufacturing efficiency.
An announcement of the sale said: ``Van Dorn Demag is currently reviewing Newbury Industries' operations to gather information required to make decisions about how the merger of the two organizations should proceed. There will be some operational changes to ensure that opportunities for cost efficiencies are maximized.''
Newbury will retain the same field service staff.
Newbury is near Cleveland's east side. Van Dorn Demag is in Cleveland's west side.
The Frohring family owned Newbury Industries until mid-1993, when they sold to Heico Acquisitions, a Chicago holding company. Glenn Frohring said last week he still owns the building and property, and that he and Van Dorn Demag signed an agreement to transfer the lease to Van Dorn Demag. The lease runs through July 1998, he said.
``We see a tremendous opportunity in Newbury's sound products in key markets that simply need the resources of a major player to support them in full,'' said William G. Pryor, president and chief executive officer of Van Dorn Demag.
Van Dorn Demag's parent company is Mannesmann Demag AG of Germany, one of the world's largest makers of injection molding machinery.
Newbury manufactures vertical presses with clamping forces of 30-300 tons.
Recently, the company has made several much bigger vertical machines, 750-ton presses, for automotive applications. New-bury also makes high-speed horizontal presses.
Van Dorn Demag officials still are evaluating that line.
Van Dorn Demag also will work to improve its 24-hour, seven-day response to Newbury customers.
Aylward said Newbury had not been profitable, despite efforts by the previous owners.
``Although they had made a lot of progress, the operation did not have the critical mass to generate a profit,'' she said.