KD Reels LLC is bringing to market a patent-pending collapsible reel to help wire, cable and rope companies save on space.
``We're really excited. The response from customers that were shown the reels was so overwhelming, it's scary,'' said Scott Derendal, president of the Gardner, Mass.-based company, in a recent telephone interview.
The new reels will have plywood flanges, but the cores are plastic. The reel can be broken down for flat storage when not in use.
``During testing, we put out over 25,000 reels into the marketplace. To this date, we've had zero damages and zero defects reported,'' he said.
The company was formed in June, as a joint venture with Montrose Molders Corp. of South Plainfield, N.J. KD Reels produces traditional plywood reels at a 22,000-square-foot facility in Gardner. The company has 16 employees.
Two executives from Montrose Molders - President Bill Wilson and Jeff Carroll, vice president and general manager - were involved in the mold designs, which require multiple inserts for each tool.
Todd Nicolay, the director of sales for Montrose, also is assuming the role of vice president of sales for KD Reels.
Derendal said the arrangement is set up so Montrose will ship plastic tubes to Gardner and then the same truck will be used to ship back plywood flanges to New Jersey.
The Gardner plant will build and assemble reels for New England and northeast Canada. Reels will also be assembled at the Montrose Molders plant for customers in the Southeast and Midwest.
Derendal said a warehouse system also will be set up in the next 12 months. Some reels will be housed in Raleigh, N.C.; Columbus, Ohio, and a third location in either Texas or the West Coast.
For five years, Derendal was vice president of sales for Northeast Reel Inc. of Jaffrey, N.H. What he saw as a sales person was that reels were costly to ship and some companies were devoting 20,000-30,000 square feet of space just to store reels.
Derendal said the wire and cable, and rope industries were looking for ways to reduce cost in what he described as a $750 million business in the United States.
Scott Derendal said the new reel is functional and has passed a drop test. He said each reel has 32-38 patent-pending locking mechanisms, but the reel can be assembled in 20 seconds. They can be used with flanges of 10-30 inches in diameter.
Derendal said the company is aiming for $5 million in sales in 2007 and $7.5 million in the next year.