Cadence opens door-panel site in Europe
TROY, MICH. - Auto supplier Cadence Innovation LLC has opened another plant in Eastern Europe to injection mold door panels for carmakers in the region.
The new site in Esztergom, Hungary, joins three Cadence facilities in the Czech Republic and will supply Suzuki Motor Corp. vehicles made in Esztergom.
The company will operate under the name Plastimat and is a joint venture with Sumitomo Corp., with Troy-based Cadence owning 74 percent of the company.
``Our strategy is to methodically pursue expansion of our manufacturing footprint in key growth regions such as Eastern Europe,'' said President and Chief Executive Officer Jerry Mosingo in a June 8 press release.
Plastimat launched production in late 2006, and expects to add more equipment as Suzuki ramps up additional production.
Cinram may add outside molding work
TORONTO - Major media replicator Cinram International Inc. may take on outside molding work to keep its injection presses busy year-round.
The Toronto company is considering molding for markets such as cellular phones, optical lenses, medical, military and automotive, Chief Executive Officer David Rubenstein said in a May 7 conference call announcing the firm's first-quarter results.
Cinram spokeswoman Lyne Beauregard Fisher said injection molding is one of Cinram's strengths. She said officials would not comment beyond what Rubenstein told analysts in the conference call.
The company operates injection presses in Toronto; Huntsville, Ala.; Olyphant, Pa.; Richmond, Ind.; Louviers, France; Alsdorf, Germany; and Ipswich, England. It uses its presses to mold DVDs, CDs, CD-ROM discs and VHS video cassette components. The firm recently closed a Commerce, Calif., operation.
Outside molding work could help offset the seasonal nature of Cinram's major products; demand for the discs usually peaks in the third and fourth quarters. Cinram currently has enough molding capacity to make 1.9 billion DVDs and more than 1 billion CDs annually.
Cinram reported sales of C$443.9 million (US$417.3 million) for its first quarter, ended March 31.
Overseas rivals lead to Daytona closing
DAYTONA BEACH, FLA. - Daytona Mold has closed after too many of its customers sent their mold-building work to Asian competitors.
``The big companies have been doing it all along,'' Daytona Mold President Herman Schiller said in a telephone interview. ``What broke our back was that even smaller companies now are sending work overseas. It's very easy if you have got the financing.''
Schiller said his firm has built injection molds for automotive, medical and appliance markets, but new jobs have been getting scarcer. The Daytona Beach company's mold repair work was relatively healthy, but Schiller decided to retire. Mold building ceased last month.
Daytona Mold's asset auction June 4 attracted about 100 bidders on the floor and about 50 over the Internet. Schiller expects the last of his equipment to be shipped out by mid-June. Still to be sold is the firm's 15,000-square-foot building on about 2 acres of land listed with Selby Realty.
Schiller also said he decided to retire when he couldn't convince any of his workers to carry on the business.
Rexam in talks to buy Owens-Illinois unit
LONDON - Rexam plc has confirmed that it is in negotiations to buy Owens-Illinois Inc.'s plastics division.
In response to numerous news reports on the rumor, the London-based company released a one-paragraph statement June 8 acknowledging that ``it is in discussions with [O-I] which may, or may not, lead to the acquisition of O-I's plastics division.''
``An acquisition, if agreed, would only occur on conditions which meet Rexam's investment returns criteria and is likely to be funded from a combination of its glass disposal proceeds, debt and an element of equity,'' Rexam said.
Rexam signed a deal March 12 to divest its glass business for $866 million. Perrysburg, Ohio-based O-I has been looking for a buyer for its plastics division since January.