BROOKINGS, S.D. (Nov. 11, 1:25 p.m. ET) — Falcon Plastics Inc. will buy a share of Poly-Cast Plastics (Suzhou) Co. Ltd., joining two other injection molders, to serve its multinational customers operating in China.
“We're working together as partners in the business. We all own a third, so it is really a team effort,” said Jay Bender, president of Brookings, S.D.-based Falcon Plastics in a telephone interview.
The facility in Suzhou, Jiangsu province, was originally established in 2006 by Poly-Cast Inc. of Tigand, Ore. Viking Plastics of Corry, Pa., became a partner in 2008.
“We do business with some multinationals, so we have an opportunity. They were looking for a reliable supplier and asked if we could do something,” Bender said.
He met his partners through the Indianapolis-based Manufacturers Association for Plastics Processors, and found that though they were based in different regions, they actually had similar philosophies.
Owning a share of the plant in China gives Falcon a chance to address the China market with a facility that is already running. The plant has closed-loop process controls and currently supplies the automotive, transportation and medical markets. It has eight injection presses with up to 550 tons of clamping force, and has room for a total of 15 machines. Bender expects the plant to add a larger press for a current client.
“I have seen our Suzhou company take great strides forward in previous partnerships. It allows us to draw an even deeper pool of engineering/technical resources and markets/product mix, ultimately diversifying and strengthening our business,” said Jeff Leedom, general manager of Poly-Cast Plastics, in a news release.
Poly-Cast maintains a 60,000-square-foot facility in Oregon and makes products such as heavy-truck electronics throttle controls, four-wheel-drive hub assemblies, automotive antenna components, needleless injection units and vials for biological indicators.
Viking is a VPI Acquisition Corp. company and operates from a 65,000-square-foot plant in Pennsylvania. It produces custom and proprietary products including sealing and fluid flow components, mobile air-conditioning products, fuel system components, caps and closures, and high-temperature masking products.
Falcon operates four U.S. facilities — two in Brookings (64,000 square feet and 30,000 square feet) as well a 40,000-square-foot plant in Madison, S.D., and a 50,000-square-foot site in Lexington, Tenn. It does injection molding, blow molding and thermoforming.
Bender, who owns Falcon with his brother Guy, sister Deani, and brother-in-law Shaun Riedesel, said the firm does not plan to ship product from China back to the U.S. He said he has held discussions with employees at all Falcon's plants and sent letters to clients, to explain the firm's action.
The company also recently expanded its Madison operations, adding blow molding equipment that can handle two 15-pound shots at a time.
Falcon has remained diversified over the years, and this venture will further those abilities, he said.