High-volume thermoformer and sealing machine maker Algus Packaging Inc. of DeKalb, Ill., has formed a relationship with California entrepreneur Gus NuÃ±o.
``We wanted to have someone represent Algus in the Southwest region,'' said Ed Baggett, Algus vice president. ``We were looking for someone with [thermoforming] capability similar to ours on a low- to medium-volume scale.''
NuÃ±o is president and owner of Armada Industries Inc., now doing business as Algus West in Temecula, Calif. He will provide technical marketing and joint sales development services for Algus Packaging's design, internal toolmaking, machinery manufacturing and thermoforming capabilities. Ownership remains separate.
A fully automated 4S+2 rotary heat-sealing machine - the smallest in the Algus machinery line - was shipped in early January from the firm's WestPack booth in Anaheim, Calif., to Algus West for use in demonstrations.
During 2002, NuÃ±o acquired the assets of thermoformer Plastics Packaging Inc. in Harbor City, Calif., and Odyssey Enterprises Inc.'s Plas/Sys thermoforming division in Gilroy, Calif.
He shifted the Gilroy business to two locations in Temecula during 2003.
Algus West employs eight and operates five in-line thermoforming machines - three heavy-gauge and two thin-gauge models - and seven sheet-fed machines. The company had 2003 sales of more than $3.5 million for design, equipment sales and thermoforming.
``The goal is $5 million for 2004,'' NuÃ±o said.
In the meantime, Algus in DeKalb is increasing space for fulfillment services now occupying 30,000 square feet.
The firm will outfit an additional 30,000 square feet in an existing building by mid-2004, bringing its total operational space in several structures to 280,000 square feet.
The DeKalb operation employs 75-110, depending on contract work, but probably will level out at 120-130 because of pending business, Baggett said. Sales in 2003 exceeded $9 million. The firm is targeting $14 million in 2004, expecting a strong year in capital equipment sales.
``We are looking at ... designing the package, manufacturing the package and manufacturing automation tooling to put it all together,'' Baggett said.