Tek Packaging LLC has outfitted a former warehouse in Huntley, Ill., to accommodate production for a major program involving certified diagnostic components.
Over five months, the custom thermoformer invested about $4 million to renovate and equip the 13,000-square-foot building for the incoming job. The structure is across the street from the Tek plant in Huntley.
Among the improvements, Tek installed a 3,000-square-foot clean room a Servicor-brand modular setup from Huntair Inc. Tek also set positions for two all-electric, KMD Speedformer-brand pressure forming machines from Kiefel.
The revamped facility was certified ISO 13485-compliant in December.
Randall Loga, Tek president, projects annual volume of at least 850 million parts for the program with an undisclosed medical products customer in Ireland.
In August 2009, Tek signed a five-year contract with the company to take over production of the diagnostic parts. Though Tek withheld specific details of the contract, Tek anticipates the contract will be worth $40 million, Loga said in an interview during the UBM Canon trade show, held Feb. 8-10 in Anaheim.
Under the deal, Tek purchased most of the customers' manufacturing operation in Ireland, sold off unneeded apparatus and moved about 25 percent of the equipment including one of the Kiefel machines to Huntley. That machine arrived in January 2010 and achieved first-article production requirements in March.
We acquired new equipment to begin production [in Huntley] before dismantling the old site in Ireland, Loga noted.
Tek recruited a project manager in Ireland to deal onsite with the multiple transition issues and, in Huntley, hired 21 people to support 24-hour, seven-day operations.
Loga projects Tek will have overall 2011 sales of $27 million, about 45 percent higher than those in 2010. He foresees new business opportunities in diagnostics and laboratory research, and high-volume electronics packaging.
The original building houses seven Kiefel all-electric pressure forming machines.
Together, Tek's nine machines constitute the most Kiefel pressure formers in one U.S. business location, said Marcus Zlotosch, vice president of sales and service with Kiefel Technologies Inc. in Hampton, N.H., a business unit of Bruckner Technology Holding GmbH.
Loga said use of the all-servo, quartz-heated Kiefels has reduced electrical consumption up to 50 percent vs. use of traditional pneumatic thermoforming equipment.
For all Huntley operations, Tek employs 84, including nine designers and six mold makers, occupies 90,000 square feet and operates a total of 12 high-speed pressure forming and thermoforming machines, including two Sencors and one Brown. The original building is certified under ISO 9001-2008 with one Class 8 clean room. The company plans to add another Class 8 room this year, Loga said.
Tek has a warehouse in Ontario, Calif.
Founded in 1983, Tek Packaging is a unit of publicly traded Esco Technologies Inc. of St. Louis.