CHICAGO (July 21, 12:45 p.m. EDT) — An American toll compounder has joined forces with a similar European firm to form the Global Compounders Alliance, a network designed to give tolling customers a worldwide supply platform.
Alloy Polymers Inc. of Richmond, Va., and Kunstoffwerk Voerde of Ennepetal, Germany, are the first two partners in the alliance. Officials with those firms said they would like to add a partner in Southeast Asia and another partner in either Japan or South Korea in the near future.
Alloy operates plants in Richmond and Gahanna, Ohio. KV has a single site in Ennepetal.
“When the manufacturers we work with go global, we want to be able to work with them,” Alloy President Subhash Pahuja said as he attended NPE 2003, held June 23-27 in Chicago. “And to do that, we need to have partners who have similar manufacturing capabilities to ours.”
“We view ourselves as a service provider for smaller quantities and grades that [resin makers] don't want to produce themselves,” KV General Manager Reinhard Skock said. “Both [KV and Alloy] work for global companies, so this [alliance] will allow us to serve Tier 1 and Tier 2 companies with one technical platform.”
The alliance won't involve any shared financial dealings among its members, as far as equity stakes or pooled buying of supplies. Members will continue to set their own financial terms, even on deals generated through the alliance.
“We want the separate and distinct companies to remain intact,” Pahuja said.
Both Alloy and KV have been active recently in acquiring new equipment, with Alloy even making a deal on the show floor at NPE 2003. Alloy purchased a 50-millimeter megacompounder from American Leistritz Extruder Corp. The machine will be Alloy's 13th line in Richmond and should be operational within the next month.
KV, which employs 90, bought a 70mm extruder from Krupp Werner and Pfleiderer GmbH in March. That line began operating earlier this month.