Belt Concepts takes Right Lane to new arenas

SPRING HOPE, N.C.—Right Lane Industries, a holding company with a portfolio containing numerous U.S. manufacturing and industrial service companies, has acquired Belt Concepts of America Inc., a PVC conveyor belt business, from ContiTech USA, Inc.

Terms of the transaction were not disclosed by the privately owned Right Lane of Chicago. ContiTech's U.S. business is based in Fairlawn, Ohio, and is a subsidiary of Continental A.G., headquartered in Hanover, Germany.

Right Lane said Belt Concepts fits well within the company's American-based manufacturing pedigree, and hopes to gain a broader share of the global market with the acquisition.

"We believe that there is a strong case to be made for manufacturing in the USA, especially considering the current international commercial and geopolitical dynamics," said Cris Balint, who took over as president of Belt Concepts effective Aug. 24. "Conveyor belts are an integral component of every manufacturing process—and with recent reshoring efforts, we plan to benefit from the increased demand for conveyor belts."

According to Anthony DiGiacobbe, communications manager in North America for ContiTech, the global manufacturer of rubber, plastic and metal components for a spectrum of industries divested itself of Belt Concepts because the lightweight PVC conveyor belt space is a niche market and "not part of Continental's core business."

ContiTech had owned Belt Concepts since it acquired Veyance in 2015. ContiTech remains a global leader in the production of heavyweight rubber conveyor belts.

"To ensure continued investment in the business, Continental sold the business to a long-term investor that will ensure sustained growth and opportunities," DiGiacobbe said. "The lightweight PVC conveyor belt business has the right ingredients to be even more successful with a new long-term owner that is willing to make continuous investments in manufacturing technology, research and development, and added sales capacity."

According to Balint, all Belt Concept employees will be retained at the company's 150,000-sq.-ft. North Carolina location, just to the northeast of Raleigh.

"We believe that people are one of the greatest assets to any business, and in this regard we are very fortunate to inherit a great team of employees, many of whom have been with the company for many years," Balint said. "We are excited with the level of enthusiasm in the company, and how well the news of the acquisition was received internally."

N.C. roots a plus

Balint said Right Lane was attracted to the acquisition for Belt Concept's consistency, reliability and diversity of markets, as well as Belt Concept's "deep North Carolina roots."

"When we learned that Continental was interested in divesting its lightweight conveyor division, we learned about Belt Concepts and its great reputation in the market," he said. "Being a long-standing North American manufacturer that had deep North Carolina roots, quality products, great employees and a loyal customer base, we knew they would be a great fit within the RLI family."

Belt Concepts, which began in 1985, primarily makes interwoven and plied conveyor belting, though it maintains experience in the logistics industry as well, which Balint said will assist Right Lane in growing its e-commerce segment.

The company is known for providing both standard and customized conveyor belting solutions for a wide variety of industries, including food processing, package and baggage handling, recycling, agriculture, underground mining, wood products and treadmill.

Dory Padilla has been with Belt Concepts for 24 years, now working as an inside sales specialist with the company.

"We supply a plethora of different types of industries, creating our ply, monofilament and interwoven belts," Padilla said. "And we are not limited to lightweight belts. We can do anything from thinner ply to 750-pound interwoven belts."

She said Belt Concepts sells its rolls of belts almost exclusively to distributors, not to OEMs, manufacturing the belts with PVC, fabric and other raw materials using a unique homogeneous ply construction.

"Whether it's manufacturing a product with certain enhanced properties such as improved tensile strength, abrasion or chemical resistance, or features such as color, that will help our distributors differentiate their product from their competitors," Balint said.

Branding remake

Although there is no branding on Belt Concepts' products, as distributors cut into the material to formulate specific belts for their customers (making any branding on the product a moot point), there is branding on Belt Concepts as a company—and it has been revamped in the wake of the Right Lane acquisition.

"Belt Concepts will retain the same name it has had since its founding in 1985, however there will be many exciting updates to the brand identity itself," Balint said. "Since the company's brand identity has been intertwined with former owner Continental's branding for the last several years, Belt Concepts is undergoing a complete brand overhaul. Everything from our new logo, website and collateral, all the way down to our business cards and email signatures, will reflect our values for American-made quality."

Right Lane noted that although it focuses on American manufacturing, it will look to gain an international market share in places where it is underrepresented.

"Right Lane is excited to enter both the domestic and global conveyor market with the acquisition of Belt Concepts," Balint said. "The broad range of end markets we serve with belting is particularly exciting as we look to grow within all these markets. The international market is an area of focus, in addition to broader and deeper penetration within the domestic market. Outside of North America, we see significant opportunities and are looking for additional distributor partners in countries where we are underrepresented."

Right Lane has three businesses that produce metal forming machinery: FENN, Multipress and Pacific Press Technologies. Its portfolio also includes a solar inverter service business, an industrial textile/seal manufacturer and a stretch film producer.

The addition of Belt Concepts is Right Lane's first foray into the conveyor belting industry.

"We are excited to work with the Belt Concepts team to continue growing the business through improved customer relationships and expanded product offerings," said Woody Cissel, Right Lane's vice president of corporate development. "Bringing Belt Concepts under Right Lane ownership will allow the company to focus on developing new problem-solving products to address the needs of its customers and will enable the company's long-tenured team of exceptional employees to continue to thrive."