Atlantis Plastics Inc. has purchased Rio Grande Plastic Products Inc., an injection molder near the Mexico border, as it expands south.
Rio Grande, based in Alamo, Texas, will become part of Atlantis' Molded Products Group and serve as a launching pad for work with customers in Mexico, according to John Geary, vice president and Molded Products general manager.
Atlantis purchased Rio Grande's equipment and is leasing the building in Alamo, said Geary, who is based in Elkhart, Ind. Terms were not disclosed.
Rio Grande owners Paul Spadafore and Paul Hamman will remain with Atlantis, and Spadafore will become general manager of the Rio Grande operation, Geary said. The 100,000-square-foot facility molds automotive safety products, including seat-belt buckle covers and restraints.
Atlanta-based Atlantis had been searching since April for a molder that could serve customers in Mexico, Geary said. The Rio Grande facility is about 12 miles from Reynosa, Mexico. Atlantis expects to install more presses and eventually build onto the current site. The facility has 38 injection presses with clamping forces of 66-500 tons. About 100 employees work at Rio Grande.
Atlantis would like to raise the number of injection presses to about 50 as soon as business warrants, Geary said.
The Molded Products Group also makes parts for appliances, building products and under-the-hood automotive items such as air-filter housings.
Rio Grande recorded about $10 million in sales last year. With new business coming from Atlantis, the facility could reach $15 million in 2003, according to Atlantis officials.
The Molded Products Group manages the company's injection molding and profile extrusion operations at eight U.S. plants. The group, based in Henderson, Ky., recently said it will expand the Henderson plant to accommodate new work from Whirpool Corp. The Molded Products Group recorded sales of $43.2 million for the first half of 2002, up about 14 percent from the same period in 2001.
Publicly held Atlantis, which also produces a variety of custom film products, recorded 2001 sales of $247.8 million.