Mexico's PlastiExports buys Tennessee injection molding plant as it eyes US growth

Mexico City — Custom injection molder PlastiExports SA de CV of Apodaca, Mexico, has acquired its first U.S. injection molding plant.

PlastiExports bought the Morrill Motors Inc. manufacturing plant in Erwin, Tenn., from Regal Beloit Corp. The facility started operating as PlastiExports Tennessee LLC on June 1, according to Operations Director J.P. Metcalf.

The deal includes 61,000 square feet of manufacturing space, 22 injection presses and 10 acres of adjacent land for future expansion, Metcalf said.

In a telephone interview, he said the Mexican owners are investing heavily in re-equipping the facility, which was scheduled to be shuttered in September, a year after Regal Beloit announced its closure.

Closing the plant would have put 130 people out of work in Erwin, a town of 6,000 on the Appalachian Trail. Metcalf said PlastiExports' "plan right now" is to employ up to 125 workers within eight to 12 months.

"We are loading this facility with 50 presses with a clamping force range of 50-750 tons. … We plan to standardize [the presses] using JSW technology," Metcalf said.

About 70 percent of the Morrill Motors jobs were injection molding related, said Metcalf, who worked for Morrill for 28 years.

Metcalf declined to confirm local news reports that PlastiExports paid $7 million in the acquisition but added the company plans "to invest significantly more than $7 million and to grow the business in the United States."

He added that the company will diversify its base of 15-22 customers from such segments as motors, off-road vehicles, home appliances and automotive.

"We are already doing some medical, and we're planning to develop a clean room," he said, adding that, it "will follow the exact way PlastiExports is set up in Mexico."

PlastiExports was founded in 1984, initially as a supplier of parts for toy manufacturers. Today it makes 150 million items a year for a variety of sectors including household appliances, electronics, recreational vehicles and construction.

"It's a world-class leader in Mexico as far as injection molding is concerned and for them to replicate their successful business in the United States is outstanding," he said.

The Erwin plant has a strong pool of employees, which is part of what drew PlastiExports CEO Baldwin Britton to the facility, Metcalf said.

"We have an extraordinarily great pool of employees. They have a lot of tenure. We have employees who have been with us from five to 30 years. There's no [staff] turnover. It's a great fit as far as injection molding goes. PlastiExports realized that the U.S. workforce is still strong and it looked like a great opportunity," he said.

Metcalf added that he had other employment options but decided to join PlastiExports.

Morrill Motors was founded in 1946 and has operated in Erwin for seven decades. Beloit, Wis.-based electric motor manufacturer Regal Beloit bought it in 2007.

Tyler Engle, executive director of the Unicoi County Economic Development Board, told Plastics News: "Any foreign direct investment in a rural community is important."