01 March 2004
01 March 2004
Glastic Corporation and Productos Plasco S.A. de C.V have recently signed a joint venture agreement to design, manufacture and sell a full range of thermoset and thermoplastic custom molded products with two operations in the United States and one in Mexico.
The joint venture will be named Glastic Molding LLC. The initial structure of the joint venture, of which Glastic Corporation will hold 80% and Plasco will hold the balance of 20%, does not include the electrical grade proprietary products business with locations in Cleveland, Ohio and Birmingham, England. In addition, Glastic Corporation has granted Glastic Molding LLC, all the rights to use Glastic Corporation logos and trademarks.
Commenting on the joint venture with Glastic Corporation; Jose Octavio Lopez Presa, President of Productos Plasco S.A. de C.V., said: ""This joint venture with Glastic Corporation is a significant milestone for Plasco, signifying our efforts to scale up the value chain, and to strengthen our presence in the global molding market. With commitments from one of our key customers, we expect this expansion to provide us in the near future with a recurring stream of new revenues for Glastic Molding.""
Also commenting on the joint venture; Patrick Greene, President of Glastic Corporation and CIGNET LLC, which is Glastic Corporation's holding company, stated: ""We are proud to have Plasco as our strategic partner in North America, and we feel that this joint venture will bring mutual benefits for Glastic Molding not only in North America, but also worldwide as we use the synergy of both companies for our global expansion.""
Glastic Molding LLC will have molding operations in Jefferson, Ohio; Salem, Michigan; and now Mexico City, Mexico; with planned expansion in Asia in the near future. ""A major goal for the new company is to ride Glastic's established presence and strong reputation in the thermoset molding market into expansion more quickly and efficiently, with our long-term strategy involving a facility in China to serve current customers. Through this joint venture, we can add value through our proven track record in the thermoset molding market as well as our strong management and technology competencies,"" said Mark DiGiampietro, Vice President and General Manager of Glastic Corporation, who will also serve in the same capacity at Glastic Molding LLC.