DestinHaus stays in-house with new Elite CEO

PLANO, Texas—Custom mixer Elite Advanced Polymers Inc. has a new CEO, and its parent firm didn't have to look far to find its new leader.

Seiichiro "Ichiro" Araki took the reins Dec. 1 at Elite Advanced Polymers, coming from his previous position as managing director at DestinHaus Capital L.L.C., a San Ramon, Calif.-based private equity firm that purchased the formerly named Elite Elastomers in February 2021.

Araki will lead company operations—the firm was rebranded as Elite Advanced Polymers in October—from its manufacturing and research and development campus in Ripley to its expansion efforts across the country.

Murli Nathan, a partner at DestinHaus who has been Elite's executive chairman and CEO, will continue as executive chairman.

"We are excited to have Ichiro join Elite's management team to spearhead the strategic initiatives we have lined up for the near future and lead the company's expansion efforts," Nathan said. "His deep experience in the North American chemicals sector is a huge asset to Elite, and we are confident that his leadership will take the company to the next level."

Araki previously oversaw DestinHaus operations in Japan. Prior to that, he spent 20 years at Sumitomo Corp., where he served as assistant general manager of corporate planning, overseeing North American chemical businesses, including thermoplastic products, rubber compounding, oilfield chemicals and automotive materials. While at Sumitomo, he spent time at the firm's rubber compounding business in Japan, and helped start compounding operations for the company in India and Malaysia.

In concert with Araki's selection, Elite moved its headquarters from Ripley, Miss., where its manufacturing operations remain, to Plano, just outside Dallas. In part, the firm said the move is being made as Elite looks to make inroads in the resurgent oil and gas sector.

DestinHaus Capital was established in 2018, with its roots in a management consulting firm founded 15 years ago by the Nathan family, led by Murli Nathan, his wife Hema, and their son Ahdiv.

"We started talking to Japanese parts makers in the U.S. and have actively been getting trials," Araki said. "We already have a couple of customers from these relationships."

He added that one of Elite's strengths has been listening to its customers, and emphasis will be placed on improving that in all areas of the company. To that end, Elite has brought on three advisers from Japan, one with a background in process control; a second with four decades of experience in compounding, who will offer advice on operational excellence; and a third who is connected to the global rubber compounding industry and can help boost the mixer's fortunes around the world.

Elite also has a strong advisory group of three people from both Japan and the U.S., including Steve Glidewell, the former owner of Elite and from whom DestinHaus purchased the business.

"This multidisciplinary group covers equipments, controls, sourcing of raw materials, has experience in operating efficiencies and manufacturing excellence," Nathan said. "Leveraging their skills has given us a lot of value already."

Araki, who will be based out of Elite's new headquarters, joined DestinHaus two years ago and worked out of Japan, but he served as executive vice president of Elite since the private equity firm purchased it.

Murli Nathan said he was CEO only on an interim basis, and that the company had the best person to take the reins in-house in Araki.

"He knows the compounding industry very well, and he has a global background, having led and worked in both the U.S. and Japan," Nathan told Rubber News. "We have a very strong Japan connection. We are aiming to bring the best of Japan and the U.S. together in the U.S. in order to build a meaningful and sustainable company. Ichiro is the best man for the job."

Araki said while rubber compounding operations are similar, the Japanese market is more saturated, while there is a lot of market opportunity in the U.S. for specialty compounds, which is the niche Elite focuses on.

With the custom mixer's desire to blend Japanese and American cultures, Araki said his background makes him uniquely qualified to step in as CEO. Under his management, Sumitomo's PVC pipe business in North America improved its EBITDA by about $25 million within four years.

The Elite CEO said his relationships with Japanese firms that have rubber product operations in the U.S. already have paid dividends.