Custom injection molder Xten Industries LLC has moved into a new headquarters plant that better accommodates its emphasis on contract manufacturing.
Xten spent about $3.5 million to build the facility in Kenosha, Wis. The firm recently moved operations there from Chicago and from elsewhere in Kenosha, explained Chief Executive Officer and Chairman Matt Davidson.
He said his firm specializes in contract manufacturing and packaging for customers in consumer products, food-service, electronics, point-of-purchase displays and money-handling supplies businesses. Xten focuses on clients in the $50 million to $100 million sales range that typically have not exported their contract manufacturing needs offshore.
The new, 77,000-square-foot custom-built factory has a 28-foot ceiling. Its former 50,000-square-foot Chicago plant was a two-story building that impeded materials flow through the operation. Its new headquarters, with more than 2 million cubic feet of space and 900 storage racks, is better laid out for contract manufacturing and packaging. The company runs 24 injection presses with clamping forces of 75 -725 tons, Davidson said by telephone.
Xten's main predecessor company was Hauser PlasTech Inc. of Chicago. Davidson and partner William Renich bought custom molder Hauser in March 2000 from the Hauser family. In late 2001 they acquired custom molder and tool builder Priority Tool and Manufacturing Inc. of Kenosha from Diane and Jeff Wudi and combined it with Hauser to create Xten.
Davidson and Renick were executives in specialty paper production prior to teaming up to buy Hauser. Realizing injection molding often is a commodity business, they wanted to emphasize the customer service aspects of it.
Xten is equipped with sophisticated scanning and tracking technology to allow the firm to take on complex order-fulfillment jobs. Quality procedures established in the new operation will help it seek ISO 9002 registration, Renick said in a news release.
Xten employs 103 full timers. Davidson said sales last year were about $6.5 million; he predicts they will climb by 25 percent or more in 2002. He said Xten has room for another 10 presses and may add a few more this year. There is enough space also to double the plant's size.
In 1996 Hauser PlasTech bought an Internet start-up company, LaCienega Software Co. of Silicon Valley, Calif., to diversify. That business was dropped and Hauser focused on molding when Davidson and Renich investigated Hauser prior to buying it.