Conti to market contract custom mixing business

AUBURN, Ind.—Using a third-party custom mixer can make good business sense for a rubber producer, and that is exactly what Continental's ContiTech division is banking on with its continued investment in the contract custom mixing side of its anti-vibration and noise reduction campus in the Hoosier state.

The location comprises two facilities, a 91,000-sq.-ft. facility that includes the contract custom mixing operation and research and development, and a 186,000-sq.-ft. building where injection molding processes and production of the anti-vibration and noise-reduction systems take place.

With 45 full-time employees at the Auburn location, a compounding technology hub known as ContiTech Advanced Dynamic Solutions, Conti will look to extend its custom mixing footprint in North America.

"We have a strong and leading position in Europe," said Diane Kickel, director of the external engineered compounds segment for Conti and head of global custom mixing operations. "We are No. 2 in custom mixing in Europe, with 70 percent of those sales in Germany. These are markets that are satisfied. But North America has always been a huge white spot for us.

"We have a lot of production facilities in N.A.—not all dedicated to custom mixing. The capabilities, the certifications at Auburn already were there and we would like to grow our footprint in North America."

Conti purchased the Auburn location from Cooper Standard Automotive's Anti-Vibrations Systems segment, based in Novi, Mich., in March 2019.

Conti disclosed a $4 million investment in August 2020 in research and development and equipment to further the mission of the custom mixing operation at Auburn, a building that soon will accommodate existing technical centers in Canada and Michigan (which also came from Cooper Standard), while supporting the company's efforts to increase efficiencies in its own anti-vibration systems.

Continental said it plans to be fully moved into the Auburn facility, which dates to 1896 when it was operated by Auburn Rubber Corp., by the end of 2024.

"Auburn has a history on this campus," said Plant Manager Adam Robinson. "The first mill room was built in 1896, while the building we are in now was built in 1993. It was built as a tire and rubber manufacturing plant, then branched into custom mixing in smaller batches. We have experience in all polymers for all rubber and we have several bulk storage units for carbon black, mineral fillers and plasticizers."

Why choose a custom mixer?

For a rubber manufacturer, one reason to contract with a custom mixer can be improved savings. The outside company—in this case ContiTech in Auburn—already is certified and owns the necessary Banburys and other processing equipment, so any capital investment for a customer is a non-factor.

In addition, custom mixers have the proper infrastructure in place to purchase, receive, transport and control the raw materials needed for mixing.

Perhaps most importantly are the unique formulas made possible by custom mixing—and the resulting improved performance traits of the elastomer—that can be gleaned from a custom-mixed solution.

"Our specialty is custom mixing and custom compound development, and this is supported by capacity knowledge," Kickel said. "We support our customers by developing formulas and staying with them (customers). Confidentiality is given for any proprietary formula, and we also have a wide range of our own recipes to offer if they do not have their own. This is what we have built up with our North American team."

Process stability is crucial for any custom mixer, as each batch and compound need to be consistent.

"This way, a customer does not have to adjust his or her process because they are getting stable compounds. We are quite proud of the wide range of compounds that we offer," Kickel said.

These include EPDM, neoprene, NBR, SBR, polybutadiene, NR and fluoroelastomers, among others.

"Coming from an operations standpoint, we have innovative products, such as flame retardant compounds, and we are looking into sponge rubber-specific applications," Kickel said.

Considerations and conversations between customer and custom mixer must include form and function: Will the compound be a solid elastomer or a sponge? Is the application static or dynamic, made to function in hot temperatures or cold, in acidic or caustic conditions? Is it required to absorb or damp vibration? What is the curing method the customer plans to use?

For ContiTech, the advantages of having in-house custom mixing abilities are two-fold, gaining customers on the contracting side, and having its own custom mixing operation to supply its production side of seals, springs and noise- and vibration-reducing systems.

"One of Auburn's strengths is our extreme flexibility," Robinson said. "We can do both high- and low-runner jobs. If you timed them, you could not tell difference between the high- and low- volume runs. We have drilled down to the nuts and bolts of the changeover so that back-to-back-to-back is the same as a one runoff."

Kickel said Conti has a business plan in place for both output and capacity at Auburn and is sticking to it.

"If you start anew at something, you have to have a plan," she said. "We have plenty of facilities for mixing in North America that we could roll out and have them join our custom mixing team."

The future of custom mixing
The inherent "beauty of the business," Kickel said, is that custom mixing is not dedicated to one sector. Just as ContiTech serves the automotive, agricultural, energy, railway and seafaring sectors with its anti-vibration systems, custom mixers serve myriad markets as well.

"The market offers balance so that we are not dependent on one area," Kickel said. "We fulfill automotive applications, industrial, even cosmetic articles ... our recipes are dedicated, but we have a balance in the markets we serve."

Sustainability remains the elephant in the room for custom mixers, just as it does for many in the rubber industry, and Conti said it is embracing the notion as it corresponds with customers about their need for reduced CO2 emissions.

"Sustainability is very big for Conti," Kickel said. "This is handled from the top down, then rolled out to regions. We need to be prepared for our customers and proactive in the industry. We are trying to look at recycling material, such as how to replace a virgin product with a recycled raw material. These are all activities in global research and development, and in North America, we have this ability."

If the demand for advanced elastomer compounds continues to increase—many custom mixers are reporting that automotive already is coming back strong—Robinson said there is room for Conti to expand in Indiana.

"With our continued growth, we are excited about the new challenge," Robinson said.

According to Conti, Indiana is home to more than 1,000 foreign-owned business establishments, which support more than 203,000 jobs. Germany is Indiana's second-largest source of foreign investment, with approximately 120 Germany-based companies employing more than 15,100 Hoosiers.

"We are excited and grateful about this opportunity to grow in the region," said Scott Bykowski, head of research and development for vibration control technology and noise insulation for Continental North America. "Thank you to the Continental management team as well as state and local governments in Indiana for their strong partnership and support throughout this process."