Custom injection molder Plastic Systems LLC of Shelby Township, Mich., more than doubled the size of its business March 22 by purchasing the assets of PME International LLC, which had been in receivership.
Plastic Systems takes over operation of the 40,000-square-foot PME operation in Swartz Creek, Mich., renaming it Plastic Systems Swartz Creek, and retaining most of the management and employees, according to Steve Belleville, chief operating officer of Plastic Systems. The purchase price was not disclosed.
``It was a situation where we needed to move out because we were landlocked and we also needed to add equipment. It is a nice state-of-the-art facility,'' he said in an April 6 telephone interview.
Plastic Systems will continue to operate its 12,000-square-foot facility in Shelby Township, near Macomb. Belleville said the company expects to add about 25 employees by the end of the year, pushing total employment to 70.
PME had continued running through receivership, which started in November, Belleville said. The firm had been making automotive exteriors and interior trim, using 14 presses with clamping forces up to 1,500 tons.
He said the Shelby facility has eight presses of 33-850 tons. Having the larger presses an hour away will allow the company to produce a wider range of offerings. Plastic Systems does primarily Tier 1 and 2 work, including a two-shot car lens. It also makes interior trim systems, under-the-hood parts, light assemblies, trim packages and seat components. The company is experienced in gas-assisted molding and also does design work.
Belleville credited partner Mike Kelley with providing the financial knowledge to set up the deal. He also pointed to a sales team led by Mike Kelley Jr. and Dave Ignagni as key components in the company's growth plan.
He said Plastic Systems formed in October 2001, when few new companies were starting, with the economy in a slump and the nation recovering from the Sept. 11 attacks. However, the company has an ambitious growth plan in place and the PME purchase is the first step.
Belleville, who has 20 years of experience in the plastic industry, said Plastic Systems is looking at other possible acquisitions, including in Mexico and Asia.