Year in Review: Rubber roller industry sees significant investment

Small, but mighty, rubber roller companies enjoyed a busy 2019 with investments in expansions and acquisitions.

Finzer Roller started things off in January when it reached a deal to acquire Carolina Rubber Rolls, a subsidiary of HBD/Thermoid Inc. The firm moved quickly, as Finzer CEO John Finzer said the deal was completed in just nine days. Thermoid said the business accounted for less than 2 percent of its rubber group's sales, but will provide Finzer greater access to customers in the textiles industry with its urethane, rubber and silicone covered rolls.

Vail Rubber Works Inc. is investing $8.3 million in a new manufacturing facility in St. Joseph, Minn., about five miles from its headquarters. The site will span 58,000 square feet, a little smaller than its current site, but will be equipped with more efficiencies and provide extra space for future growth. The project was forecast to be complete in March 2020.

Passaic Rubber Co., which celebrated its centennial this year, added new equipment to its 70,000-sq.-ft. site in Wayne, N.J. It also is looking to expand in the coming years. The firm purchased a new roll building line, increasing capacity by 30 percent, and converted its vulcanizer from steam to electric, giving it a greater level of temperature control.

Finally, American Roller Co. L.L.C. also brought on Robinson Capital Partners as its new investment group, investing an undisclosed amount into the firm to fuel its growth strategy.

Passing the torch

Vip Rubber had a busy 2019, launching a university-style training program and achieving AS9100 Rev. D, the leading standard for aerospace management systems.

It also transitioned leadership to the third generation of the Vipperman family, fulfilling a succession plan that's been in place for more than a decade. Bernardyne (Deena) Campana was named president, Albert Perez vice president of aerospace, Cindy LeClair vice president of marketing and Martin Perez has become the firm's technical director.

Vip wasn't the only one with a transitioning leadership team. Ace Products and Consulting L.L.C. re-aligned its own as it named Frank Pappas director of sales and business development and Doug Foster director of operations, while industry veteran Doug Hartley retired from his position of sales and marketing director. Hartley will remain an investor with the firm.

Founder and CEO Erick Sharp said the timing was right now that Hartley had helped Ace push through the startup phase and established the foundation to chase growth.

Transition complete

NewAge Industries also underwent an ownership transition of sorts, but instead of naming a single successor, CEO Ken Baker handed the company over to its employees.

The firm became fully owned by the work force through its Employee Stock Ownership Plan, fulfilling a vision that started in 2006, when Baker sold 30 percent of the company into the ESOP. He added that the move has been transformative for NewAge, as employees could view the company as their own and directly see how their actions could develop wealth for themselves and their team.

Turnover has stayed at about or below 10 percent since the ESOP was first implemented, with some employees reaching their 25-year anniversary recently. Baker sold another 10 percent in 2013, then 9 percent in 2016, electing to do the transition in small pieces to maintain control during the transition.

Other expansions

A couple of other small businesses expanded in 2019, including, but not limited to:

• Dynamic Rubber Inc. moving into its fourth new facility since its establishment in 2002 as it began construction of a new 30,000-sq.-ft. site in Des Plaines, Ill., representing a $300,000 investment. The move doubles the size of its current location, located not far from the new facility;
• MTE Engineered Materials L.L.C.—a joint venture between Mark Tool & Rubber Co. Inc. and Elite Elastomers Inc.—plans to build a new factory in response to a major upcoming project; and
• Specialty Manufacturing Inc. added a 450-ton Sodick TR450EH3 liquid silicone rubber injection molding machine and six new employees, the second expansion the firm has made in the last three years.

Best of the best

Rubber & Plastics News sought to find the best places to work in the rubber industry. And, in conjunction with Best Companies Group, found eight such firms who made the cut.

Reed Rubber Products Inc. scored the highest among the eight thanks largely to its ability to listen and collaborate among its work force. The other seven—H.B. Chemical, R.D. Abbott Co. Inc., R.L. Hudson & Co., Stockwell Elastomerics Inc., Sur-Seal, The Rubber Group and Zeon Chemicals L.P.—all had similar success stories.