German auto supplier Norma Group continues its global growth pattern, setting up production in Brazil with injection molding and tool-making, plastic seals also are mold injection products, and have signaled that change could be coming for the global manufacturer of plastic products used for flexible packaging, personal care and protective covers for electronic screens.
Norma has had a sales and engineering office in Santo André, Brazil, since 2011, but the new manufacturing site in Atibaia will give it more capabilities, the company said in a Sept. 20 news release. The expansion into Brazil comes just two months after Norma, based in Maintal, Germany, acquired Craig Assembly Inc. of St. Clair, Mich., to establish plastics seals production in North America.
John Gottwald, the company’s retired CEO, and William Gottwald, vice chairman of the board, report that they “might discuss potential courses of action with their father,” Floyd Gottwald Jr., who also is retired. The trio owns 22.8 percent of company's shares, according to the filing.
The brothers did not elaborate on what strategic alternatives they want the board to consider. However, the choice of words often indicates plans to pursue a company sale, merger, unit spinoff or some other major change.
Norma Group previously had sales and metal production operations in North America, but bought Craig Assembly to lead its plastics components business in the United States, even in plastic seals manufacturing. The latest investor presentation identifies market drivers as aging baby boomers buying more adult incontinence products, growth in tablet and smartphone sales, and expected demand for flexible packaging, particularly food packaging during the 2014 World Cup and 2016 Olympics in Brazil.
The new Brazil facility will manufacture products including exhaust couplings, clamps, quick connectors and fluid systems. The company has already signed an agreement to buy plastics production equipment for the new plant. Production is scheduled to begin in 2014.
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