German molder bolsters N. American unit

HOWELL, Mich. -- German auto supplier Dr. Schneider Kunstoffwerke GmbH built its reputation on designing and molding intricate interior parts such as heating and air-conditioning registers and movable cupholders.Now it is building those same capabilities in its North American unit, Dr. Schneider Automotive Systems Inc., and is reaching out to tool makers and other companies in the region to make it happen."The whole infrastructure is building up now," Wolfgang Steeb, CEO of Lindenstrasse, Germany-based Dr. Schneider, said during an interview at the company's plant here last month. "We need to be independent from the corporate parent. That's our philosophy -- that all plants be independent."The German company, which recorded nearly $320.4 million in sales last year, has been a plastics injection molder since 1937 and has made parts for the auto industry since 1956. But the mid-sized supplier specializes in complex subassemblies filled with moving parts, a specialty that could set it apart from competitors.The heating and air-conditioning vent that Dr. Schneider turns out for BMW AG has nearly 50 individual parts and takes two-shot injection-molded pieces, painting, overmolding and laser etching.Complex workThose kinds of contracts require a high level of complexity for both the company and its suppliers, Steeb said.For the registers that it began producing at the Howell plant in 2004, the company relied on 100 molds produced by its tool makers in Germany, including molds with rotational inserts for two-shot production (making one plastic component out of two materials in one process). But as Dr. Schneider expands with new programs in the United States, it wants to develop relationships with nearby mold makers capable of producing the same types of tools."We are in the process of taking a lot of technology done in Europe to North America," said Willi Hoefer, general manager of the Howell plant. "The tool technology is very high. We have gone looking for tool makers here that are capable of working to the level of what we're doing in Europe."The company has connected with tool maker Liberty Molds Inc., of Portage, Mich., and plans to use it to produce tools for future products."To find a customer like this -- especially now, the way things are in the auto industry -- is very important for us," said Brian Scott, Liberty Molds' general manager. "We're very excited about what's going to happen with this in the future."Liberty Molds just added two employees to its base of 30 workers, specifically to service and maintain molds for Dr. Schneider, Scott said.Expanding businessDr. Schneider Assistant General Manager Ken Flood says the company is just beginning to market its full product development capabilities within North America.First it wanted to make sure it was well-established in Howell. The 61,000-square-foot site now houses nine presses, with three more on the way this year. The plant also has a proprietary paint line and assembly areas.The company employs 60 in Howell now but expects to grow to 200 employees within five years. As the business builds, Steeb said, he expects the company will look at additional sites in the South to keep up with the expanding auto business there.Dr. Schneider also is growing in eastern Europe, where it is adding a second plant in Poland and a plant in Slovakia, Steeb said.The company sees its greatest potential in established auto markets that are eager for improved technology, rather than in lower-cost regions.Said Steeb: "This market has much more potential for us than the Asian market."You may e-mail Rhoda Miel at rmiel@crain.com

German molder bolsters N. American unit

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