EDEN PRAIRIE, MINN. — Custom injection molder S&W Plastics Inc. and metal processor Lou-Rich Inc. see potential new markets for their recently formed alliance.
The venture aims to provide original equipment manufacturers with design, development, production and distribution services, integrating the two firms' plastics and metal capabilities.
S&W of Eden Prairie, Minn., operates generally in metropolitan Minneapolis. Now it can take advantage of Albert Lea, Minn.-based Lou-Rich's 38-state sales and marketing network.
``We see some overlap,'' particularly in the medical market, Scott Thiss, S&W owner and chief executive officer, said.
S&W employs 85, had sales of about $11 million last year and operates 18 Toyo presses of 55-500 tons in a 56,000-square-foot facility. One-half of the business involves electrical transport packaging for use in manufacturing semiconductors, and 25 percent relates to medical applications.
An employee stock ownership plan controls Lou-Rich, which employs 400, has sales of about $30 million and operates plants in Hayward, Minn.; Brandon, S.D.; and Lake Mills, Iowa, in addition to Albert Lea.
The firms began talking about a year in advance of the alliance's Dec. 31 formation. Stock was exchanged, but neither firm gave up voting control, Thiss said.