An Israeli reusable plastic packaging injection molder is spending millions of dollars to expand into the United States, working with an established company to create a new entity.
Plasgad Ltd. is working with RPM Plastics LLC of Statesville, N.C., to create a U.S. operating unit called Plasgad USA LLC.
The new company is jointly owned by Plasgad and John Hobson, the owner of RPM, a company that makes new products and provides service to other plastic product manufacturers.
Plasgad USA now will control the product manufacturing aspect of the Statesville location while RPM will separately continue its other operations, including equipment service, installation and relocation for other firms.
The deal includes more than 20 injection molding machines for Plasgad to make its product line of reusable plastic pallets, bins, containers and crates. The manufacturing site employs 35 in 100,000 square feet.
Plasgad made the investment after examining the U.S. market for reusable packaging and seeing continued growth in that part of the business.
"Plasgad identified this huge potential few years back and started to build its Go to Market strategy to the U.S. market. This recent acquisition is another stepping stone in implementing its strategy towards the U.S. market," company spokeswoman Naama Konin said in an email interview.