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February 16, 2023 04:39 PM

Plastech to close Minnesota molding site, cut 71 jobs

Frank Esposito
Senior Staff Reporter
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    lakeland-plastech_i.jpg
    File photo
    Frandsen Corp. acquired the assets of Lakeland Tool & Engineering Inc. in Anoka, Minn., to run it as part of Plastech Corp. in 2019.

    Plastech Corp. is closing an injection molding plant in Anoka, Minn., in a move that will eliminate 71 jobs.

    The layoffs will be effective April 14, according to an article in the Minneapolis Star-Tribune. Jerry Miller, a Plastech general manager told the paper that the Anoka plant's equipment "is very outdated" and that the firm is adding new manufacturing space at its headquarters plant in Rush City, Minn.

    Miller added that all employees being let go in Anoka have been offered jobs in Rush City. The two sites are about 50 miles apart.

    The 187,000-square-foot Anoka site had been part of Lakeland Tool & Engineering Inc., which was acquired in early 2019 by Plastech parent firm Frandsen Corp. of North Branch, Minn. At that time, Lakeland had annual sales of $22 million. The sale also included a Lakeland plant in Frederic, Wis.

    Officials said at the time that both Plastech and Lakeland served the appliances and outdoor power markets, but had little overlap in customers. Lakeland also made parts for the consumer goods, electronics, industrial, and institutional furnishings markets at its two plants. The two sites combined operated 59 injection molding machines and 14 thermoset compression molding machines with auxiliary equipment.

    Plastech operated Rush City and Anoka as separate business units. The Rush City plant has annual sales estimated at $65 million, according to a Plastics News industry ranking. The 350,000-square-foot Rush City plant supplies components parts and assemblies to the automotive, agricultural, construction, recreational equipment and transportation markets.

    Frandsen Corp. is a family of businesses owned and operated by founder and CEO Dennis Frandsen, his son, Greg Frandsen, who is president, and Dan Ferrise, who is chief operating officer. In addition to manufacturing, Frandsen operates in banking in Minnesota, North Dakota and Wisconsin.

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