CHURUBUSCO, IND. (June 22, 10:30 a.m. ET) — BRC Rubber & Plastics Inc. has acquired the equipment and intellectual property assets of Veyance Technologies Canada Inc. for an undisclosed sum.
The purchase, designed to help the company increase its sales and gain new customers, will help BRC expand its operations in northeast Indiana, possibly creating more than 50 jobs by 2013, said Mike Meyer, BRC executive vice president.
The Churubusco-based producer of rubber-to-metal bonded parts had been discussing the purchase of the Quebec City operation for several months, Meyer said.
Veyance decided the molded rubber components produced at the site no longer are part of its core business.
The Veyance Technologies Canada plant in Quebec City was established in 1948.
A former ammunition factory, it was purchased and converted into a rubber products factory by Goodyear, which manufactured footwear products such as soles and heels at the site for many years.
Veyance in February disclosed it would close the molded goods plant, which employed about 100 according to local news reports, and a power transmission factory in Owen Sound, Ontario.
Veyance, part of Goodyear until 2007 when it was sold to Carlyle Group, still does business under the Goodyear Engineered Products name.
As part of the acquisition, BRC will consolidate Veyance's current business to its three northeast Indiana manufacturing facilities in Hartford City, Montpelier and Ligonier. About 90 percent of that work will be in Hartford City, Meyer said.
Meyer said the firm had room in its Indiana factories to house the equipment, including rubber molding and injection presses.
BRC could hire as many as 51 employees, mainly press operators, by 2013 at the three facilities.
Founded in 1973 as a manufacturer of rubber products, the company expanded its production capabilities in 1985 to include plastic injection molding.
In addition to its three northeast Indiana facilities, BRC also operates at sites in Churubusco; Bluffton, Ind.; and Auburn Hills, Mich.
The company supplies customers in North America, South America, Europe and Asia, with the bulk of its revenues coming from the automotive sector.
The Indiana Economic Development Corp. offered BRC up to $63,250 in training grants based on the company's job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives.
A complete version of this story is available at www.rubbernews.com.