Packaging Design Group Inc. of Hunt Valley, Md., has entered a joint venture with Tecnoplast, a Zug, Switzerland, firm, to form a new company called PDG Engineering SA.
The new company, in Guate-mala City, will have a new, 90,000-square-foot facility operational by the end of the year. It will run 26 injection presses with clamping forces of 25-800 tons, six extrusion blow molding machines and two tube extrusion lines.
The company will make pro-ducts for the cosmetic, household, chemical, electrical, health and beauty aid, pharmaceutical, and vitamin industries.
Terms of the deal were not disclosed.
The joint venture was formed Sept. 17 after 18 months of negotiations. The firms chose Guatemala City because of family ties Tecnoplast principals have in the area.
Tecnoplast will provide tooling, including some built in-house. PDG plans to market the idea that customers no longer need to have a large volume to justify a custom molded part.
``The investment is small and the piece price will be competitive, or better, than the equivalent parts available off of the largest cavitation tools run in the United States,'' Kenneth Gillman, Packaging Design Group co-founder, said in a news release.
``In many cases PDG Engineering will pick up some, if not all, of the investment, provided the agreement includes some purchasing commitments,'' he said.
Packaging Design Group was founded in March 1995 by Gillman and Peter Kallman, former employees at Baltimore closure molder Poly-Seal Corp. PDG distributes products for U.S. injection molders that make stock rigid packaging.
Customers in the United States include Phoenix-based Tech Group Co.'s Top-Seal Corp. and Star Container Co. units, which injection mold tamper-evident lids and wide-mouth containers; and Master Molded Products Corp. in Elgin, Ill.
Customers in Central and South American locations include Avon Products, Warner-Lambert, Procter & Gamble, BASF, Merck & Co. and Gillette.
``In some cases we are finding that we are competing with products produced from the Far East,'' Kallman said.
``The idea is that we will deal with the logistics of bringing product into the [United States],'' Gillman said. ``The plan is to eventually have a warehouse in Miami for customers to release product from, when they need it. There are also plans to open a sales office on the West Coast as soon as the joint venture is in full swing.''