DETROIT — Two minority-owned companies have joined forces to open a new injection molding and tooling plant to serve the automotive industry.
Stratech LLC, a plastics engineering and tooling company in Troy, Mich., collaborated with Rapid Products Inc., a small molder from Auburn Hills, Mich., to open the facility this month.
The 30,000-square-foot plant, under the Stratech name, opened in Auburn Hills. Initially, the plant will operate seven presses with clamping forces of 200-1,000 tons, said Manu Bhatia, Stratech president and chairman.
The facility also will perform prototyping and production tooling, Bhatia said. The plant will make a variety of interior and exterior parts for suppliers including Textron Automotive Co. Inc. and other companies working with U.S.-based automakers, Bhatia said.
The company is investing close to $3 million in the new building and equipment, he added.
Sales volume for the new facility should reach $4 million during the first 12 months, Bhatia he said. The plant has the capacity to generate more than $26 million in business, Bhatia said May 25 during the Michigan Minority Procurement Conference in Detroit.
Stratech and Rapid Products also have teamed up on a project to develop plastic heating and air-conditioning systems for automakers, Bhatia said.
The companies have obtained minority business status with carmakers, helping those customers meet minority sourcing goals. But Bhatia, originally from India, said minority status only provides a start.
``It opens doors for the company,'' said Bhatia, who conducts plastics-part consulting work. ``But it doesn't help you if you don't perform.''