Advanced Special Tools Inc. of Battle Creek, Mich., will create a subsidiary, Advanced Plastics Molding, that will be housed in the same facility.
The firm plans to add employees and injection presses.
AST has both tooling and molding functions at its 34,400-square-foot plant. With the formation of APM, the two functions will become separate companies.
AST is a subsidiary of Katayama America Co. Inc. of Shelbyville, Ky., itself a subsidiary of Ibara, Japan-based Katayama Kogyo Co. Ltd.
``APM will be an entirely separate company from AST, but still owned by Katayama,'' spokesman Mark Garrett said Aug. 4 by phone.
Garrett said APM will stick strictly to automotive work for now. AST Vice President Hal Kato will be president of APM.
APM will begin production with AST's three injection molding machines but tentatively plans to have 10 by the end of the year.
Garrett also said APM intends to add about 15 employees, bringing its total to 18. AST employs 55.
The new equipment and employees will not result in any physical expansion of the site. The amount of money to be spent on new machines had not been decided, Garrett said.
Michigan Gov. Jennifer Granholm announced the formation of APM after a recent visit to Japan.