BARKAN, ISRAEL — Custom injection molder Technoplast Industries Ltd., is continuing its expansion program with three new Sandretto presses, including an 1,100-ton machine.
In addition, the firm, which operates plants at Migdal Ha'Emeq and at Barkan on Israel's West Bank, has purchased robotic equipment, including an automatic assembly line, and will take delivery of a 900-ton Husky injection press by December. In all, it plans to spend $2.5 million this year.
Technoplast, a manufacturer of electrical and telecommunications components, do-it-yourself hardware products and packaging, raised about $14 million through a February stock offering on the London Stock Exchange.
The expansion is part of a two-year program to invest as much as $10 million. The goal is to raise production capacity 50 percent, according to the company.
The molder relies heavily on Zag Ltd., an Israeli manufacturer of hardware products for export to U.S. retailers including Home Depot, Sears and Wal-Mart. Sales to Zag, which also supplies retail chains in Europe and Australia, represent about 70 percent of Technoplast's total business.
The molder also has pursued a policy of investing in customers to win long-term supply contracts. In January, Technoplast took a 28 percent stake in Tiltan 3-D Technologies Ltd., which develops games combining multimedia computer programs and plastic components.
Technoplast will manufacture all the Tiltan plastic game parts. Sales of the games started in June and Technoplast has devoted a 300-ton injection press to parts production.
Technoplast also acquired a 20 percent share in Friendly Machines Ltd., which develops self-guided consumer equipment including a lawn mower, a golf cart and a vacuum cleaner. Once again, Technoplast has a contract to supply plastic parts for orders for the finished Friendly products, said Technoplast Chairman Itamar Patishi.
Armed with its enlarged production capacity, Technoplast also is bidding for business outside its main sectors and expects to secure business with new customers in Europe. One project involves molding medical waste bins and home furniture, said Baruch Zekaria, Technoplast's London-based business development manager.
Technoplast installed the 1,100-ton Sandretto press and robots in June at its Migdal Ha'Emeq plant.
In August, it installed the two 500-ton Sandretto presses at its expanded Barkan headquarters plant.