STEVENSVILLE, MICH. - Wollin Products Inc. has begun merging with Plastic Engineered Components Inc. to create a $220 million-per-year custom injection molder.
Wollin's parent company, Charter Oak Capital Partners LP, recently bought PEC for undisclosed terms. The firms announced the purchase last fall, but the deal was delayed by poor lending market conditions, Wollin President and Chief Executive Officer Greg Botner said in a telephone interview. The firms originally hoped to finalize the purchase by the end of 2000.
The first step in integrating Wollin and PEC will be the closure of Wollin's Stevensville, Mich., molding operation, effective in mid-August. Most of the work there will move to Wollin's plant in Clyde, Ohio. Production of small parts made on presses with clamping forces of less than 200 tons will go to Wollin's facility in Brampton, Ontario. Stevens-ville's main client is Whirlpool Corp., which has a plant in Clyde.
Stevensville runs 50 presses with clamping forces of 85-700 tons, Botner said. It has 235 production employees who will be affected by the closure. Another 35-40 employees will continue at Stevensville, which will remain Wollin's administrative headquarters. Employees continuing will include the Whirlpool sales support team, engineers and technical support personnel, human resources staff and personnel in finance and information technology.
Wollin used to have three plants in Stevensville but consolidated them into one a few years ago.
When the Wollin/PEC merger is effective, probably in a few months, the company will have a new name, according to Botner, who has been named CEO of PEC. Wollin brings to the table three U.S. plants, plus one in Brampton and another in Monterrey, Mexico. PEC of Lincolnshire, Ill., has five U.S. plants.