Custom injection molder Adkev Inc. of Goodland, Ind., is investing $4.5 million to buy and outfit a vacant plastics plant in Monticello, Ind., about 30 miles from its headquarters. Production there may begin in May.
The 183,000-square-foot structure had housed a Landis Plastics Inc. plant, which a new owner shut down in January 2004. Berry Plastics Corp. of Evansville, Ind., acquired Landis in November 2003.
``The plant was fairly antiquated and was added onto numerous times,'' said Kevin Weaver, Adkev sales manager.
``That facility will enable us to continue with our current automotive business but allow for diversification as well,'' Weaver said.
Automotive parts account for about 80 percent of Adkev's volume. The firm also makes coil forms and fasteners.
Many of Adkev's automotive customers require returnable totes that vary in size but collectively occupy significant space. Monticello is the answer. Adkev is tearing out and replacing concrete in 45,000 square feet of the 73,000-square-foot manufacturing and support areas. The remaining 110,000 square feet is for warehousing.
Improvements include a Motan centralized materials system.
Adkev will transfer five presses from Goodland to Monticello, including two each with 385- and 500-ton clamping forces.
Some Goodland employees will start the Monticello operation and Adkev is hiring more workers.
Adkev will benefit from a 10-year agreement to abate some of the taxes on new manufacturing equipment and physical improvements at the plant.
Another project slowed work on the Monticello effort: Adkev added 25,000 square feet to its Goodland facility, bringing that site to 130,000 square feet. The project, completed in August, let Adkev add several injection molding machines.
``We needed more floor space,'' Weaver said.
Adkev has 64 machines: 51 horizontal presses of 55-720 tons, 12 verticals of 35-200 tons, and a two-shot press of 130 tons.
Adkev employs 140 and had 2005 sales of more than $24 million, up 18 percent from the previous year. Weaver projects a similar increase during 2006.
Gary and Cathy Rheude co-own and operate the business. He is president and she is director of personnel and training.