An alliance between automotive supplier Enerflex Solutions LLC and Diversified Plastics Corp. is aiming to give Enerflex closer access to its customers, while providing Diversified with additional business.
The agreement marries Enerflexs foam products, customer contacts and designs with manufacturing capacity from Diversified to make energy-absorbing components for automotive customers in the midwest and southwest. It allows both companies to see economies of scale, while eliminating the cost of a new facility for Enerflex, of Troy, Mich.
No customer wants to have to build a new factory when theres a lot of capacity in the marketplace already, says Mike Morelli, Enerflex sales and marketing director.
Diversified had bid on business for Enerflex previously, said plant manager Larry Clark, but the agreement allows the firm to move forward cooperatively.
We think were both going to be very prosperous with this, Clark says.
Diversified has 250 employees at plants in Nixa, Mo., and Centralia, Mo., and at its Accurate Plastics Corp. injection molding subsidiary in Nixa.
Enerflex formed in 2001 as a joint venture between Woodbridge Group of Mississauga, Ontario, and Farmer Group of Pontiac, Mich., to produce energy-absorbing materials for headliners, doors, instrument panels, bumpers and other systems.
Rhoda Miel is a staff reporter for Plastics News, a sister publication to Automotive News.