McKechnie acquires airplane parts film
WALSALL, ENGLAND — McKechnie plc has reinforced its aerospace component business with the $90 million takeover of two Reno, Nev., parts companies.
Its acquisition of airline aftermarket engine and airframe parts distributor Arger Enterprises Inc. and its associate, Jesse Industries Inc. — which makes high-technology metal and plastic engine components — boosts McKechnie's penetration of the world commercial airline aftermarket.
Last year, the two firms recorded combined pre-tax profit of $11.6 million on sales of $45.4 million, according to McKechnie of Walsall.
Jesse, with annual sales of about $6 million, precision molds and machines components from plastic slugs using specialized engineering materials, chiefly DuPont's Vespel polyimide, said McKechnie Chief Executive Officer Andrew Walker.
The acquired firms will help McKechnie negotiate barriers to spare-part approval. They can identify and develop replacement parts approved under the U.S. Federal Aviation Authority's stringent parts-manufacturer certification.
Walker said plastics' use in the aerospace field is growing, particularly because of corrosion and vibration considerations.
He said the latest acquisitions follow McKechnie's strategy of expanding its specialty products and engineered plastics divisions in the United States and Europe.
This year, the group is completing investment of about $20 million on projects in its plastics operations.
The projects include a new chrome plating plant for automotive components at Nicholasville, Ky., and the conversion of a plant at Llantrisant, Wales, to make the company's Paxton Maxi-Nest line of materials-handling containers, Walker said.
New line to boost Guaranteed's volume
GLOUCESTER, N.J. — Guaranteed Plastics Inc. recently began operating a $75,000, custom-made film reclaim line that should help boost its film volume this year to between 15 million and 20 million pounds, up from 6 million pounds last year.
President Jack Fitzgerald said he was not happy with the quality of outsourced toll densifying work, so the Gloucester-based company brought the business in-house.
Guaranteed also reclaims fiber and fabric.
Beacon Light China-based molder
MANCHESTER, CONN. — Beacon Light Holding Corp. has acquired Xin Hui Orient Light Co., an injection molder based in Guangdong, China, for an undisclosed amount.
The May 22 deal took the form of a joint venture, with Manchester-based Beacon Light buying 76 percent of the company and Pinnacle International Corp., based in Hong Kong, taking the other 24 percent.
The Xin Hui factory was appraised at $8.8 million dollars and had been owned by the Chinese government, according to Beacon Light.
Beacon Light Chairman Jerry Gruenbaum said Beacon Light Xin Hui Plastics Co. will mold computer housings.
``We are purchasing Shantou S.E.Z. Crescendos Electronic Co. Ltd., a manufacturer and exporter of computer monitors of Guangdong, within the next 30-60 days,'' Gruenbaum said. ``The purchase of a computer export company and Xin Hui will allow us autonomy because Shantou will no longer need to subcontract out for the needed plastics components.''
Pinnacle International has also secured potential clients in the food-supply, forest-product and medical industries, and with governmental parties of various countries.
The Xin Hui factory now employs 200 and will add more in the next few months. Gruenbaum also said Beacon Light will move its U.S. headquarters to New York.
Beacon Light has sales of $50 million for the 1998 fiscal year.