Plastek Industries Inc. is moving into Mexico with the acquisition of IPQ, an injection molder and assembler in Querétaro.
The deal gives Erie, Pa.-based Plastek a new geographic niche, adding to its plants in the United States, Brazil and England.
Plastek CEO Dennis Prischak said IPQ, which will be renamed Plastek de Mexico, has customers and end-markets in common with its new parent company. He did not provide details on IPG's operations.
“They are in the fast-moving consumer goods business. We have some common customers, which is a good thing. A lot of synergies, a lot of similarities in values and in approaches,” Prischak said in an Aug. 25 telephone interview.
“And I think it helps open the door for Plastek to serve more of our current customers as well as potential new ones,” he said.
Plastek is an injection molder and integrated toolmaker. It has five factories in Erie, plus plants in Hamlet, N.C.; Indaiatuba, Brazil, and Mansfield, England.
The trend, the CEO said, is for multinational companies to seek out partnerships with suppliers that can provide services across their service area.
“The direction for more and more of the OEMs is more consolidation of the supplier base, dealing more with global suppliers for global projects as time progresses. So I think it's going to be more important for survival to be associated with global supplier bases,” Prischak said.
“It allows us access to a market that is important to us and it's got excellent management, sound practices and tremendous technical capabilities,” the CEO said.
Privately owned Plastek serves the personal care, home care, oral care, food and medical markets. For example, the company said it supplies more than 80 percent of the deodorant stick container market, which means it makes 3 million deodorant sticks each day, every day, according Plastek's website.
IPQ also serves the personal care, oral care and fast moving consumer goods markets, Plastek said.
“Mexico and Central America is a market that Plastek serves on a limited basis, and with this acquisition we have a great opportunity to serve our global customers operating in Mexico,” Prischak said in a statement.
All management, technical and production employees at IPQ will remain in place, Plastek said.
Plastek ranked No. 42 in Plastics News' most recent survey of North American injection molders, with estimated sales in the region of $200 million. Plastics News estimated the company's total corporate sales at $325 million.
