CHURUBUSCO, Ind. (June 21, 2012)—BRC Rubber & Plastics Inc. has acquired the equipment and intellectual property assets of Veyance Technologies Canada Inc. for an undisclosed sum.
The purchase, designed to help the company increase its sales and gain new customers, will help BRC expand its operations in northeast Indiana, possibly creating more than 50 jobs by 2013, said Mike Meyer, BRC executive vice president.
The Churubusco-based producer of rubber-to-metal bonded parts had been discussing the purchase of the Quebec City operation for several months, Meyer said.
Veyance decided the molded rubber components produced at the site no longer are part of its core business.
The Veyance Technologies Canada plant in Quebec City was established in 1948.
A former ammunition factory, it was purchased and converted into a rubber products factory by Goodyear, which manufactured footwear products such as soles and heels at the site for many years.
Veyance in February disclosed it would close the molded goods plant, which employed about 100 according to local news reports, and a power transmission factory in Owen Sound, Ontario.
Veyance, part of Goodyear until 2007 when it was sold to Carlyle Group, still does business under the Goodyear Engineered Products name.
As part of the acquisition, BRC will consolidate Veyance's current business to its three northeast Indiana manufacturing facilities in Hartford City, Montpelier and Ligonier. About 90 percent of that work will be in Hartford City, Meyer said.
It is not unusual for BRC to look for companies that might make a good acquisition, he said.
“We always have our eyes open and are looking for partners that might be a good fit,” Meyer said. “This is a deal that made sense.”
BRC anticipates most or all of Veyance's rubber molded component customers will come over to BRC, further increasing the U.S. firm's sales.
Meyer said some of Veyance's customers also have been BRC customers, giving the Indiana-based manufacturer an opportunity to further increase its reach into these organizations.
“We have a very broad product range here that we feel will be very appealing to any of Veyance's customers,” Meyer said, adding that the firm had room among its Indiana factories to house the equipment.”
That equipment includes rubber molding and injection presses, many of which are modern, Meyer said.
The process of incorporating the acquisition into BRC is expected to be largely completed this August.
The anticipated increase in sales and demand means that BRC could hire as many as 51 employees, mainly press operators, by 2013 at the three facilities.
Meyer doesn't expect many, if any, former Veyance employees from Canada to join BRC at one of its Indiana locations.
“We will be adding people but I'm not sure if any of their technical people will be coming from Quebec,” Meyer said. “That's yet to be determined.”
BRC also is obtaining any formulations associated with Veyance's former business, Meyer said.
Founded in 1973 as a manufacturer of rubber products, the company expanded its production capabilities in 1985 to include plastic injection molding services.
In addition to its three northeast Indiana facilities, BRC also operates at sites in Churubusco; Bluffton, Ind.; and Auburn Hills, Mich.
The company supplies customers in North America, South America, Europe and Asia, with the bulk of its revenues coming from the automotive sector.
The Indiana Economic Development Corp. offered BRC up to $63,250 in training grants based on the company's job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives.
Hartford City's government approved additional property tax abatement at the request of the Blackford County Economic Development Corp. The incentives encourage BRC to hire many of its new employees from among current Indiana residents.
“That certainly makes sense and we have many qualified, experienced professionals in and around the Hartford City plant, where most of our new positions will be,” Meyer said.