Detroit — A month after it was purchased by a French private equity firm, Clyde, Ohio-based injection molder Revere Plastics Systems LLC is making big plans.
The company, which specializes in molding for the appliance industry, expects to see growth as it diversifies into the automotive market. The company plans to move its headquarters to metro Detroit in 2018.
President Glen Fish also expects to win more appliance work, in part thanks to President Donald Trump's decision to impose a tariff of up to 50 percent on imported large residential washing machines.
"We expect to absorb some volume increases over the short term," Fish said during an interview in Detroit. "Our appliance business has continued to grow."
Whirlpool Corp. is a major Revere Plastics customer. Immediately after the Trump administration announced the tariffs on imported washing machines, Whirlpool announced that it is adding 200 jobs at its factory in Clyde, which is just a stone's throw from Revere's largest plant.
Benton Harbor, Mich.-based Whirlpool said it was investing in U.S. manufacturing.
Fish also expects to win business from South Korean appliance makers including Samsung Electronics Co. and LG Electronics Inc.
"That's our hope," Fish said. "The tariffs will level the playing field."
Samsung and LG were already scrambling to set up U.S. manufacturing plants in anticipation of the tariffs. Fish expects to supply those plants with key plastic components for washing machines.
On top of all that, Revere is preparing to grow through acquisition. Fish expects to focus on an M&A strategy in the second half of 2018.
"We expect to be a great platform for growth, and the injection molding sector is obviously ripe for consolidation," he said.
It's all a big change for Revere, which until Dec. 18 was owned by Revere Industries LLC, a Harahan, La., industrial conglomerate active in power supplies, tools, security products and commercial sound equipment. Fish is optimistic about Revere's future with its new owner, French private equity Ardian.
Revere traces its origin to Wollin Products Inc., a Stevensville, Mich., molder that was a major Whirlpool supplier. Originally a family-owned company, Wollin had a series of financial owners beginning in the 1990s that saw its name change to Titan Plastics Group, then Revere Plastics.
Revere has four plants, in Clyde; Jeffersonville, Ind.; Poplar Bluff, Mo.; and Brampton, Ontario. The company has nearly 1,100 employees and expects to post sales of about $240 million this year.
Revere started working on diversifying beyond the appliance market about 2½ years ago. At the time, automotive work accounted for about 1 percent of Revere's sales. Now that' sup to about 6 percent.
Fish said it will be a challenge to diversify while Revere's appliance market continues to grow.