Malaysian compounder Metro Wealth Polymer Pte. Ltd. has taken a minority interest in the Dongguan, China, factory of U.S. firm LTL Color Compounders Inc., a move that expands LTL's network in Asia.
Investment details were not disclosed, but officials at Dongguan LTL Color Compounders Ltd. said it would help both firms 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, based in Morrisville, Pa.
Metro has 19 compounding and coloring production lines with a monthly output of nearly 4 million pounds. The firm did not respond to a request for comment.
The Johor, Malaysia-based firm said on its website that this year it plans to boost capacity to 5.5 million pounds a month. Customers include electronics giants like Sony, Sharp and Samsung.
Figaniak said Metro will supply LTL with recycled feedstock for its EcoFast product line in Asia and LTL's U.S. headquarters site.
Metro 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 an Aug. 3 statement.
He said the venture is a way for both firms to shorten lead times, cut costs and enhance their ability to supply closed-loop recycled materials to U.S. manufacturers in China and Southeast Asia.
LTL's 82,000-square-foot Dongguan plant, which opened in 2007, has two compounding lines and received ISO 9001:2008 certification in 2010.
LTL has 11 compounding lines in Morrisville. It specializes in compounds and colors for engineering plastics in such markets as automotive, personal care, packaging and medical.
