WAYNE, N.J.—Passaic Rubber Co. has purchased the assets of Belting Industries Co. in order to expand its size, capabilities and product range.
Passaic is in the process of making several key changes in the endless belt manufacturer's operation, and officials said the projects could take several months to complete.
Immediately after the acquisition was finalized in April, Belting Industries' name was changed to Belting Industries Group, or BIG, to better reflect its wide range of capabilities and offerings, according to the co-owners of Passaic, Jeff Leach and J.D. Mathey.
Belting Industries will operate as a stand-alone subsidiary of Passaic, noted Mathey, who serves as president and CEO of Passaic. Leach is the chairman and chief operating officer of the Wayne-based company.
Another major change that's currently in the works will be to move the acquired company's primary belt manufacturing operation from its present plant in Kenilworth, N.J., to a state-of-the-art facility in nearby Union, N.J., Leach said.
He said the Kenilworth factory, which Belting Industries leases, will be demolished. The plant's work force of about 30 will be retained and the acquired firm's management team will continue running the business, excluding the former owner, who's retiring, Leach said.
Passaic plans to put money back into the operation and expects to add to the work force, he said. Financial details were not disclosed.
Heading up the refurbishing project at the leased Union plant is James Leach, Passaic's vice president of operations, who said it likely will take about another month to complete the move. "There are a lot of moving pieces involved," including optimizing the flow of production efficiencies, refurbishing existing equipment, running all new electrical lines and making the plant compliant, he added.
"It will be laid out ideally for what the company does, with individual cells for workers," Jeff Leach said. "We're refurbishing the building from the inside out."
In the end, James Leach said the new facility, which spans about 22,000 square feet, will allow Belting Industries to have a much more efficient, streamlined operation to produce its endless belts. "We hope to shut down the current facility and move to the Union plant at the same time to avoid any loss of production."
Belting Industries—a family owned, 60-year-old producer of truly endless belts coated in rubber or urethane—also has a plant in Somersworth, S.C., that handles all of its coating.
In a release sent to customers and vendors, Belting Industries officials noted that they "should be seeing some positive changes in the business over the next few months." Because the sales and management teams along with the work force will remain, there should be no compromise in service or the quality of the company's products, the officials said.