Polycorp Ltd. has purchased a lining production business from RJF International Inc. that will help the company move into a new market segment and increase exports.
Polycorp's acquisition of Livonia, Mich.-based Polymeric Protective Linings Inc. was completed Aug. 26 after the companies worked for months to smoothly combine the two operations. The purchase price wasn't disclosed.
Polycorp discussed buying PPL about three years ago but the firm wasn't interested in selling its business at that time, said Polycorp President Peter Snucins.
``So, about a year ago when I approached them, they thought it was the right and logical move to make,'' he said. ``It took us about nine months to figure out how we were going to do all of this.''
The newly formed division is called Polycorp/Polymeric Protective Linings Inc. and will manufacture at Polycorp's Elora facility, Snucins said. About 25 employees at the Livonia sites will lose their jobs because of redundancy in positions, he said.
PPL is the former B.F. Goodrich Protective Linings division. Snucins and his partner purchased B.F. Goodrich Canada's engineered products division in 1995.
``This is actually like two units coming back together,'' Snucins said. ``We bought the Canadian side of B.F. Goodrich and they (PPL) bought the U.S. side and we combined them again.''
PPL's production took place in three small facilities in Livonia, and Polycorp is in the process of transferring manufacturing to Polycorp's 55,000-sq.-ft. plant, he said.
Polycorp will add 15 employees at the Elora site to aid in the increased manufacturing, which almost will double Polycorp's size, Snucins said. Major production and lab equipment and intellectual properties are being moved from Livonia to Elora.
The acquisition will allow Polycorp/Polymeric Protective Linings to become the North American market leader in producing calendered rubber, Snucins claims.
PPL's production of cholorbutyl, food grade lines and products for the railing industry also will help Polycorp to delve into a new business segment.
Polycorp focuses on extruding, molding and calendering. It has about 95 percent of its sales in North America, but the PPL purchase will give the company entrance into South American, Mexican, Asian and European markets.