Injection molder Southern Indiana Plastics Inc. has acquired all of the assets of Louisville, Ky.-based Progress Plastics Inc. — a 45-year-old business whose owner retired.
Terms were not disclosed. SI Plastics is picking up 22 molding machines ranging from 25 to 150 tons as well as tooling room equipment, and will retain all Progress employees, Roger Smallwood, president and CEO of Jeffersonville, Ind.-based SI Plastics, said in a phone interview.
Smallwood also said he is leasing the Progress plant for the time being, but the building is for sale. It is located 10 miles from the Jeffersonville facility he opened in 1999 to serve the auto market.
SI Plastics currently does more than $10 million a year in sales, mostly in the auto industry but also the lawn and garden market and some consumer products, Smallwood said.
“Progress did business in a variety of markets — some electronics, some window and conveyor industry and furniture,” Smallwood said. “We acquired those customers as well. There's a pretty good market pickup for us, which will definitely diversify us and add to our capabilities.”
Progress had no sales and marketing department working to get new customers, Smallwood said. He sees opportunity there.
“That's where I think we can help it grow a bit more,” he said.
SI Plastics is experiencing growth in custom molding, which it serves from a 75,000-square-foot plant that operates three shifts, 24/7. The automotive industry, in particular, is driving growth. Smallwood pointed to the record 17.5 million light vehicles sold in the United States in 2015 and said this year looks good, too.
“They say they won't hit the mark of last year, but it's going to be close,” Smallwood said, noting that he started his business by making plastic clips, clamps and protectors for auto line harnesses.
SI Plastics also provides assembly and secondary services for plastic components. Employees work with a wide variety of thermoplastics including polypropylene, nylon and polycarbonate.
With the acquisition, SI Plastics now has 58 injection molding machines ranging from 25 to 1,100 tons of clamping force and 75 employees.