DETROIT—Perstorp Plastic Systems will begin production in July of its Xytec collapsible pallet containers at a new, 55,000-square-foot plant in Detroit.
The facility is the Tacoma, Wash., firm's second U.S. manufacturing plant and will help it serve the automotive market and expand capacity. It will employ 35 and feature structural foam and injection molding.
Other products to be phased in later include injection molded plastic pallets and collapsible totes made with gas-assist techniques. Perstorp typically makes its products from high density polyethylene or polypropylene.
The plant will include three injection presses with a shot-size capacity of 150 pounds
The Perstorp plant is located in Detroit's Empowerment Zone, an 18-square-mile area the city has targeted for economic development. The company, owned by Perstorp AB of Perstorp, Sweden, is the first foreign-owned business to locate in the area. It is eligible for labor-training tax incentives, property tax rebates and other incentives.
The global company changed its name from Perstorp Xytec Inc. earlier this year. The plastic systems group, which had $230 million in 1996 sales, is considering forming a joint venture or alliance in South America, said Jean-March van Maren, Perstorp Plastic Systems' vice president of marketing and product development.