Sintex makes bid for Indian auto molder
KALOL, INDIA - Indian manufacturing conglomerate Sintex Industries Ltd. is continuing its promised buying binge, with a pending deal to buy a division of plastics molder Bright Bros. Ltd., extending its reach into the automotive industry.
Kalol-based Sintex said earlier this year it has set aside $60 million for acquisitions targeting the auto and electronics industries in India, the United States and Europe. In June it bought a controlling interest in Wausaukee, Wis.-based Wausaukee Composites Inc.
The proposed buyout of Bright Bros.' auto division for 1.49 billion rupees ($36.8 million) will give Sintex an injection molder of parts for cars and scooters made in India.
``This acquisition represents a significant step toward us establishing a strong presence in the domestic plastic auto component market,'' Managing Director Amit Patel said in a Sept. 6 news release.
Bright, based in the New Delhi suburb of Faridabad, also molds parts for consumer products, appliances and plastic pallets and crates. Its automotive parts include radiator grilles, bumper fascia, instrument panels and other interior trim.
Otter broadening line with lower-cost cases
Fort Collins, Colo. - Otter Products LLC is introducing some less-expensive, semi-rugged models of its cases for such electronic items as cameras, personal digital assistants, laptops and iPods.
For its new cases, Otter vacuum forms a top layer PVC keypad and screen membrane at its Fort Collins headquarters plant and outsources other manufacturing to vendors in Colorado, California and Shanghai.
Contractors injection mold a second layer of polycarbonate and use thermoset silicone rubber for a third wrapping layer. The cases protect contents from drops, dust and scratches.
In its typical rugged cases, Otter uses ABS and PC for outer shells, thermoplastic rubber for overmolded components and PVC and PC for screen protectors, said Chief Executive Officer Curt Richardson. The cases are water- and crush-proof, many with foam linings.
Otter employs 30 and projects 2007 sales of $7 million, vs. last year's $5.9 million.
Chinese pipe maker expands into fittings
Fuqing City, CHINA - China's Fujian Zhenyun Plastics Industry Co. Ltd. will add plastic pipe fittings to its pipe manufacturing operations, while exploring the potential of marketing its products in Japan and the U.S.
Fuqing City-based Zhenyun is financing the expansion with S$7.9 million (US$5.2) of S$17.4 million (US$11.4 million) it expects to raise through an initial public offering on the Singapore Exchange.
In May, Zhenyun added a polyethylene pipe line with capacity for 882,000 pounds per year. The company is set to add five more PE pipe production lines later this year, with new capacity for about 25 million pounds per year. It is also adding five PVC pipe production lines to boost capacity by 15.4 million pounds a year.
Zhenyun has 38 PVC pipe lines, making pipe in diameters from about 0.64 inch to 2.1 feet; and 35 PE lines for pipe from 0.8 inch to 9.9 feet in diameter.
The firm's sales rose 69 percent, and its profit 185 percent, between 2004 and 2006, according to a prospectus filed with the Singapore Exchange. For 2006, Zhenyun posted sales of 393 million yuan (US$49 million) and pre-tax profit of 78 million yuan.
Zhenyun claims it is not subject to any foreign exchange control that could affect its ability to pay dividends to holders of Singapore-listed shares, which are for investors outside China.
The company said it will use about S$9.5 million (US$6.2 million) of the IPO proceeds for working capital for research and development, design, manufacture and sale of its plastic pipe in China, Hong Kong, Australia and New Zealand.