Appliance maker Tacony Corp. of Fenton, Mo., is bringing its molding needs in house.
The firm has acquired Mac Molding Co. to help in the transition. The firms announced the acquisition, terms of which were not disclosed, on Aug. 25.
Tacony is buying two new injection presses to install in a recently completed 100,000-square-foot addition to its St. James, Mo., plant. The electric presses are due to be installed within six months, according to a spokeswoman.
Mac Molding will continue to run its plant in Sunset Hills, Mo., where it will supply Tacony as well as outside customers in electronics and consumer products. That facility houses 20 presses and employs 24.
``We hope to take costs out that aren't revenue generating,'' said Tacony Chief Executive Officer Ken Tacony in a telephone interview. Although the company will begin molding its own parts, it will continue to rely on outside molders for some parts, at least during a transition period.
``But we want to reduce [use of outside molders],'' he added.
Mac Molding's quality and delivery attracted Tacony, Ken Tacony said in a news release. Mac Molding has been producing parts for Tacony for more than eight years and lately Tacony represented the majority of its business.
Tacony employs more than 650 making products for sewing, home floor care such as vacuum cleaners, commercial floor care and ceiling fans and lighting. Its sales now run about $200 million annually.
Mac Molding owner Lance Loeffelman has signed a long-term contract to continue running 36-year-old Mac Molding as well as assist Tacony's entry into the business.
``The acquisition was a good fit for both companies,'' Loeffelman said in a prepared statement.
``This presented an opportunity to grow Mac Molding's capacity to be able to keep up with the growth of Tacony's business and to continue to service our other customers and to seek new ones.''