The bidding war for automotive parts firm Tarxien Corp. promises to spin off a new custom injection molding operation. PaintPlas Inc. announced Nov. 25 ``we have accelerated our plans'' to build an 80,000-square-foot molding and warehouse facility in Ajax, Ontario, where it runs an exterior plastic and metal auto parts painting plant.
The company currently does no molding.
PaintPlas was an unsuccessful bidder for Tarxien, also of Ajax. Gecamex Technologies Inc. of Leamington, Ontario, recently raised its offer to C$15.40 (US$11.40) and Tarxien's board approved the Gecamex bid.
Tarxien shareholders had until Nov. 28 to tender a majority stake in the firm under the Gecamex bid.
Richard Myron, PaintPlas chairman, president and chief executive officer, said in a Nov. 27 interview that his firm probably will begin molding in 1998 but officials have not finalized details.
``We will bring on molding equipment as needed,'' he said.
``We need to integrate the services of molding and painting.''
His firm's 140,000-square-foot painting plant does not have enough room to add molding machinery, so PaintPlas is looking for a second plant in Ajax.
It wants to mold near its painting facility whether or not it is successful in a continuing search to acquire an injection molder. Myron said PaintPlas will continue its focus on exterior auto parts. Its main customers are Tier 1 suppliers to General Motors Corp.