An alliance between automotive supplier Enerflex Solutions LLC and Missouri molder Diversified Plastics Corp. is aiming to give Enerflex closer access to its customers, while providing Diversified with additional business.
The agreement marries Enerflex's foam products, customer contacts and designs with manufacturing capacity from Nixa, Mo.-based Diversified to make energy-absorbing components for automotive customers in the Midwest and Southwest. It allows both companies to see economies of scale, while eliminating the cost of a new facility for Troy, Mich.-based Enerflex.
``No customer wants to have to build a new brick-and-mortar [factory] when there's a lot of capacity in the marketplace already,'' said Mike Morelli, Enerflex sales and marketing director, during a Jan. 22 phone interview.
Diversified had bid on business for Enerflex previously, said plant manager Larry Clark, but the agreement allows the firm to move forward cooperatively.
``We think we're both going to be very prosperous with this,'' Clark said.
Diversified has 250 employees at plants in Nixa and Centralia, Mo., and at its Accurate Plastics Corp. injection molding subsidiary in Nixa.
Enerflex and Diversified are launching the alliance with expanded polypropylene, expanded polystyrene and Gecet-brand polystyrene/polyphenylene oxide materials, said Nancy Slifco, Enerflex business director. Future work will add in Accurate's injection molding capacity.
Diversified's truck fleet also will play a part in the alliance, because the Missouri company can reduce delivery costs, Morelli said.
Enerflex formed in 2001 as a joint venture between Woodbridge Group of Mississauga, Ontario, and Farmer Group of Pontiac, Mich., to produce energy- absorbing materials for automotive headliners, doors, instrument panels, bumpers and other systems. Enerflex has manufacturing and assembly operations in Troy, Mexico City and three sites in Ontario: Tilbury, Sarnia and Kitchener.
Diversified opened in 1969 and works in the automotive and packaging industries.