LNP Engineering Plastics Inc. has expanded into South America through its purchase of Mixcim Industria e Comercio Ltda., a compounder in Sao Carlos, Brazil. The acquisition was made through Kawasaki LNP Inc., the parent of Exton, Pa.-based LNP. Mixcim, which will be renamed LNP-Mixcim Engineering Plastics do Brasil Ltda., makes lubricated, conductive and specialty thermoplastic compounds. Terms of the deal were not disclosed.
"Since Brazil's promising future is attracting many of our European and U.S. multinational customers, it's the ideal location for our nearest facility," K-LNP President and Chief Executive Officer Robert Schulz said in a news release.
Mixcim's product mix is split evenly between engineering and commodity resins. The 4-year-old firm's products include anti-static compounds for electronic packaging, as well as highly concentrated commodity-based additive packages for film and sheet.
LNP plans on steering Mixcim's production more toward engineering resins such as nylon and polycarbonate, said John Leland, LNP's vice president and business planning director.
Mixcim, which expects to post sales of $1.5 million in 1999, operates one twin-screw and one single-screw extruder in 25,000 square feet of leased space.
LNP plans to install a second single-screw extruder at the site early next year, Leland said. Long-term plans for the site include buying or building its own plant, he added.
The purchase also will allow LNP to take advantage of Mixcim's research relationship with the materials engineering center at Sao Carlos Federal University.
LNP posted sales of about $260 million in 1998, ranking among the top 25 U.S. compounders with a market share of almost 3 percent.