PolyFlex expands global reach

FARMINGTON HILLS, Mich.—PolyFlex Products Inc. is branching out its operations into new regions of the globe.

So far in 2015, PolyFlex has established a local presence in Germany, with two engineers to provide technical and sales support, along with finished products supplied by the firm itself or its local manufacturing partners.

The firm also established an alliance with China-based Shanghai EC Global International Trading Co. to provide PolyFlex with logistics freight support in transporting product into the country.

PolyFlex CEO Mark Kirchmer said these steps are just the beginning.

“I would see us establishing some kind of representation sales office initially and then possibly some kind of a further partnership where we would put those engineers on the ground,” Kirchmer said of the firm's Asia activities. “That's really what we need in there first, and then potentially some alliance partners to manufacture there too.”

Currently, PolyFlex does most of its manufacturing at its Farmington Hills facility, primarily serving the packaging market by providing urethane and thermoplastic elastomer-produced products such as returnable packaging, protective shipping containers, and custom and standard rack dunnage systems. The firm is heavily involved in the automotive industry, servicing virtually all major original equipment manufacturers.

In 2007, PolyFlex launched its ThermoFlex subsidiary in Morrison, Tenn., which deals primarily in heavy gauge thermoforming, mostly for non-automotive applications.

“OEMs anywhere can use what we're doing,” Kirchmer said. “But our growth has been automotive because of our location and our knowledge within automotive. We're doing some work in the appliance industry and also doing work in construction equipment and we see that growing as well.”

Kirchmer said the firm saw the need to establish a global presence about two years ago when it started an office in Mexico, shipping some equipment there to provide local production. PolyFlex is set to start its first run in September.

“We started to see the need for carrying some of that packaging through in a global way,” he said. “So we established a PolyFlex in Mexico and Europe and started to establish some partners in Asia.”

PolyFlex just completed its first three designs and projects for companies in Germany that are facing the same issues in part protection. While the German operation does not have a manufacturing presence yet, Kirchmer said the firm's partners in the country can replicate any of PolyFlex's processes. The firm has secured alliances in injection molding, rim urethane molding and heavy gauge thermoforming, using the same kind of materials and processes as PolyFlex does in Michigan.

The executive expects PolyFlex's international business as a whole to require it to put in a couple of application engineers and designers in Germany soon.

“We see in Europe some of the same issues that we see here, really everywhere, in the industry,” Kirchmer said. “You have to protect the part; you don't want any debris or shavings from a container getting into an assembly. Part protection and the durability of the container are important.”

PolyFlex was founded in 2003, employing 10 people with less than $1 million in revenue at the time, Kirchmer said. Through 2014, the firm has grown to more than $27 million in revenue and more than 100 employees.

The firm has added a lot of space in that span, starting in a 16,000-sq.-ft. shared building in Livonia, Mich., then occupying the majority of that building while adding another in the same complex by 2007.

Like most companies relying on automotive business, the firm had to weather the 2008-09 recession, but Kirchmer said PolyFlex anticipated growth beyond 2009 and began to look for a larger facility. In late 2011, PolyFlex moved into its current 55,000-sq.-ft. building while also adding injection capabilities to its ThermoFlex operation, which allowed it to occupy the remaining half of the 60,000-sq.-ft. building it currently occupies by 2013.

The executive said its ThermoFlex business continues to grow as well.

Since the move to its current location, PolyFlex has taken over another 11,000-sq.-ft. facility in the industrial park and also is looking to add a third and possibly a fourth building sometime in 2015, combining for about an additional 40,000 square feet to continue expanding its urethane business.

Kirchmer said PolyFlex is looking to invest between $1 million and $2 million for this additional space over the next year and a half.

“Our urethane business has grown to a point where we need to put it in its own setting,” he said. “That will free us up some room here to add more injection in this plant, which it's really more suited for.”

Kirchmer said the firm is branching out into other industries outside of automotive, but it has experienced most of its growth by extending partnerships with new OEMs.

Its non-automotive business includes lawn and garden equipment components, some components for ATVs, business with amusement companies for different rides, and even the video game industry.

Kirchmer said a game controller company launched a new piece of equipment for which PolyFlex designed trays. It was a fairly large program for the company.

But automotive will remain the firm's mainstay for the foreseeable future.

“We are diversifying, but automotive is certainly where we are,” Kirchmer said. “We're right here in the heart of automotive, and it's really what we know. It can be a tough business, but with what we do we've started to see some other applications that feed our core.”