Clarion Technologies Inc. has inked a $1.09 million deal with Engineered Plastic Components Inc. to expand production into Iowa at least temporarily, with the potential to establish long-term operations there.
The agreement, along with additional rental leases, essentially retains production at two Pella, Iowa, factories that once were home to Pella Plastics. Clarion also retained 60 workers to injection mold components for an appliance industry customer.
``Our goal is to grow it,'' said John Brownlow, vice president of sales for Grand Rapids, Mich.-based Clarion.
EPC, based in Grinnell, bought Pella Plastics in January. It consolidated equipment and most operations in Grinnell as part of an expansion there that took employment to 300 and included a 43,000-square-foot expansion, said President Reza Kargarzadeh in a Dec. 11 telephone interview.
Clarion purchased surplus equipment left after the consolidation, while separately negotiating short-term leases for the two rental properties in Pella.
The company also purchased some business contracts from EPC, giving Clarion a new customer, Brownlow said.
The two firms would not specify details about the equipment included in the deal, but it includes enough presses and auxiliary infrastructure to continue production there starting Dec. 12.
Clarion - with four factories in Michigan and one in South Carolina - will use the Iowa location as a base to seek work with other consumer products companies in the region, along with Midwest automotive production, Brownlow said.
Coperion has been refocusing its operations and seeking out new business during the past year. It posted a profit of $1.78 million on sales of $73.8 million through the first three quarters of 2003, compared to losses of nearly $4.5 million on sales of $60.8 million for the same period in 2002.