Thermoformer Cindarn Plastics recently entered a joint venture with Dongjin Co. Ltd. of Seoul, South Korea.
``Our customers manufacture some of their products overseas and we'll be able to serve them domestically and in Asia,'' said Cindarn President Steven Wasserman. ``In addition, Dongjin extrudes and thermoforms. They provide vertical integration and access to efficient and state-of-the-art facilities.''
Cindarn runs one plant in Baltimore, where it is based. It thermoforms transport trays and packaging for cosmetics, medical and consumer products. It operates 10 in-line thermoformers and three sheet thermoformers, processing high density polyethylene, polystyrene, glycol-modified PET, PVC and ABS. Annual sales are about $3 million.
Dongjin has three plants in South Korea and another in Shanghai, China. It specializes in PE and PS packaging for food and consumer products. Dongjin has between six and eight extruders, about two dozen thermoformers and more than 200 employees, Cindarn said. Dongjin had sales close to $100 million last year.
Cindarn and Dongjin previously had a business affiliation through a now-defunct Cindarn division that made Christmas and Halloween decorations. Even after Cindarn stopped making those products, the firms discussed how to maintain their relationship.
``The timing is very appropriate [because of the exchange rate],'' Wasserman said in a telephone interview. ``Pricing is way down and raw materials have dropped in value [in South Korea]. In fact, we are buying [extruded] material from them to manufacture here.
``By partnering, we can generate business for them through our contacts in Asia,'' he said.
Besides coordinating the manufacture and delivery of customers' overseas needs, Cindarn plans to manufacture some packaging in South Korea for delivery to the United States, he said.