Hilco Technologies plans to add injection molding capability to a hard coatings firm it acquired in early October.
Hilco will invest about $1.5 million to buy new presses and install them at Xenon LLC of Armada Township, near Romeo, Mich., said Hilco President Matt Holwerda. Eventually the Xenon facility will have presses with clamping forces up to 1,000 tons, he said by phone.
Custom injection molder Hilco, based in Grand Rapids in western Michigan, has customers in eastern Michigan and Ohio that are closer to Xenon's plant. Some of the customers buy parts that are coated for ultraviolet-light protection and wear and abrasion resistance, but not all, Holwerda said. Xenon has plenty of space in its 42,000-square-foot building to accommodate injection molding capacity. It also has sufficient coating capacity for foreseeable needs.
Holwerda said Xenon will operate as a separate subsidiary of Hilco and will continue to serve other customers. Xenon has been coating Hilco partsfor about three years. Most of Xenon's work has been automotive lenses, but the subsidiary will diversify under the new ownership.
Hilco plans to diversify further and is looking at medical, sports and power tool applications where its molding expertise and Xenon's coating experience could bring in new business. Hilco already is diverse, with less than half its sales to automotive customers.
Xenon operates automated paint lines with robotics, a Class 1,000 clean room and a UV curing system. Its sales this year are expected to be less than $2 million.
Hilco - also known as Hilco Plastic Products Co. Inc. - should reach $14 million in sales this year after growing about 25 percent annually for the past eight years.