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August 01, 2006 02:00 AM

RJG buys Routsis, grows with partnerships

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    CHICAGO (Aug. 1, 2:20 p.m. EDT) — RJG Inc. has expanded its footprint into the injection molding industry with two global partnerships and the acquisition of leading plastics training firm A. Routsis and Associates of Dracut, Mass.

    A partnership with Intouch, headquartered in North Hampton, England, will allow RJG, based in Traverse City, Mich., to offer its customers a single system in which Intouch's production control system is integrated into RJG's process control system.

    “It allows us to focus on what we do best — process control — and provide a comprehensive solution,” said RJG President Matthew Groleau in announcing the partnership June 19 at NPE in Chicago.

    “The advantage of their technology platform is that it is not network-based,” but it can be downloaded from the Web, making upgrades simpler and shortening installation time to a day instead of weeks, Groleau said. In addition, it will allow operators and managers to check job status from anywhere using a remote computer, laptop, palm device orcell phone that has a Web browser. Groleau said RJG already has a handful of installed systems and is talking with 15 customers about integrating Intouch into the RJG eDart process control system. “It is easier to implement for a greater percentage of processors,” he said.

    RJG also said it will be the exclusive distributor and service provider for the process-monitoring system of Futaba Corp., an $850 million company based in Mobara, Japan.

    The sensors are integrated in ejector pins, a critical factor when space is limited.

    Critically, RJG has converted the technology from analog to digital to interface directly with eDart. Currently in beta tests, the Futaba products should be available in the North American market in 60 days. The system previously had been available for sale only in Japan.

    “It's going to come to the market at a lower cost” than competing systems because “the sensors, the software and the hardware cost significantly less,” said Ken Fassett, RJG global sales manager.

    Fassett said the product will most benefit companies that need to focus on containing short shots. In short shots, the mold cavity is partially filled with melt, a technique that minimizes waste and requires no regrind. It is best for thick parts.

    The Routsis acquisition gives RJG customized interactive and Web training to complement its hands-on and classroom training. RJG's training will be integrated into Routsis, which will operate as an independent division.

    “Our vision is to create global certification programs and a comprehensive training solution for the industry,” said Groleau, adding that RJG has done a lot of co-development work with Routsis during the past year.

    “It will give us the most extensive worldwide training network for injection molding,” he added.

    Groleau said he expects the partnerships and the addition of Routsis to add 15 percent to sales growth in 2006, “and we think that is a conservative estimate.”

    RJG reported sales of $14 million in 2005.

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