MORRISVILLE, PA. (Aug. 5, 12:30 p.m ET) — Malaysian compounder Metro Wealth Polymer PTE Ltd. has taken a minority interest in the China factory of U.S. firm LTL Color Compounders Inc., a move that expands the American company's network in Asia, LTL said in an Aug. 3 announcement.
Details of the investment in the Dongguan LTL Color Compounders Ltd. subsidiary were not disclosed, but LTL officials said it would help both companies expand in recycled content, and grow their regional networks.
“This collaboration brings a strong financial partner to Dongguan LTL along with a manufacturing presence in Malaysia and a sales and distribution network throughout Southeast Asia,” said Jim Figaniak, president of LTL Color Compounders Ltd., in Morrisville, Pa. The China factory is in Dongguan.
Metro Wealth started in 2003 and has 19 compounding and coloring production lines with a monthly output of 1,800 metric tons. Metro Wealth officials did not respond to a request for comment.
The Johor, Malaysia-based company said on its website that it plans to increase its capacity to 2,500 metric tons a month this year. Its customers include electronics manufacturers like Sony, Sharp and Samsung.
Figaniak said Metro Wealth will supply LTL with recycled feedstock for its EcoFast product line in both Asia and at LTL's headquarters facility in the United States.
Metro Wealth can boost its service to its China customers and get access to some of LTL's technology and products, such as its ColorFast, ColorRex and Surlyn Reflection product lines, to expand business in Southeast Asia, Figaniak said in a statement.
Figaniak said both companies see the venture as a way to shorten lead times and reduce costs, and enhance their ability to supply closed-loop recycled materials to U.S. manufacturers in both China and Southeast Asia.
LTL's Dongguan facility has 82,000 square feet of manufacturing space and two compounding lines. LTL has 11 compounding lines at its Morrisville factory.
The Dongguan facility, which opened in 2007, received ISO 9001:2008 certification in 2010.
LTL specializes in compounds and colors for engineering plastics in a range of markets, including automotive, personal care, packaging and medical.
Metro Wealth said it focuses on reprocessed engineering plastics in Asia and has UL-approval for a halogen-free, recycled 20 percent glass-filled polycarbonate.