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PK
USA adds massive press, gets Nissan work
B.J.
Fairchild-Newman
Staff Writer
When
a company can add a lucrative contract, install an enormous piece of
machinery, hire new employees and increase production without the expense
of expanding the facility, it is in a good place.
PK USA, 600 Northridge Drive, finds itself in that enviable position as
its new injection-molding press started producing automotive parts
immediately following the holiday shutdown.
According to Luis M. De Alba, general manager in charge of engineering and
new business at PK, the new contract with Nissan was a speedy and
unexpected windfall for the company that resulted from a previous supplier
in Michigan losing the contract.
Since Nissan already was doing business with PK and was pleased with its
performance, the Shelbyville facility was offered the contract to produce
plastic parts for Nissan's cars.
"Normally, negotiating a new contract is a lengthy and complicated
procedure," De Alba said, "but this deal took place very
quickly, within a couple of months."
The challenge facing PK in accepting the contract was the necessity of
ordering a new injection molding press from UBE Machinery in Japan.
At a cost of $2 million, PK determined that it could purchase the machine,
have the 3,000-metric ton press shipped to Los Angeles from Japan and
delivered to Shelbyville - using 14 semitrailers.
While waiting for the press to arrive, PK had to reconfigure the
production layout in its plastics division and reinforce the floor of the
factory to support the weight of the machinery - and all of this had to
happen very quickly.
UBE Machinery also sent contractors to install the machine and get it up
and running, even sending an engineer from Japan to make sure that it was
working properly. De Alba described buying the machine as a "turnkey
purchase" - the price would ensure that it was installed and in
production at PK before the engineers from UBE would leave.
In a side note, De Alba said that the company was intrigued this week to
see their president, Eiji Umabayashi, perform a safety ceremony at the
site of the new machine, which consisted of placing salt in the corners
surrounding the press and throwing sake on the floor.
"These safety ceremonies are very common in Japan," De Alba
said, "but I have been here 12 years, and this is the first time that
I have seen it done. It was interesting to see the ceremony, and anything
that will make the machinery safer is good for the company."
Bill Kent, vice president of human resources and corporate relations for
PK, said that safety is a primary focus of the automobile parts
manufacturer. He stressed that meetings to discuss safety issues are
frequent at the facility, and workers often start their shift with
exercises to warm up their muscles and make them more alert.
The new press is the biggest piece of machinery in the plastics division
at PK, and it will consume 1 million pounds of plastic pellets per year.
The melted pellets are then heated to 400 degrees as they go into the
mold, and the machine applies tremendous pressure to squeeze the plastic
into the desired shape.
Parts are then cooled by thermolators - or water chillers - before
enormous robotic arms remove them from the machine and hand them to
workers, who inspect the parts and apply a piece of foam insulation to
each one. Robert Brewington, manager of engineering and new business for
the plastics division at PK, said that the machine can produce two parts
every 70 seconds.
The substantial investment by PK makes sense for the parts manufacturer
because the Nissan contract will add $4 million in annual revenue and
represents a significant increase in the company's plastic parts
production, which currently makes up only 15 percent of the company's
total plastics output.
The company posted $130 million in sales for 2006, and at a time when many
American car manufacturers are in serious financial trouble, De Alba said
that PK is in a "growth plan."
"Our midterm and long-term plans show continued growth," De Alba
said.
He also added that PK is "in conversation" with company
officials at Honda, which is currently building a new assembly plant in
nearby Greensburg, and he hopes that this will lead to a relationship with
Honda for the local company to produce parts for them.
Because of anticipated growth, PK has taken its building at 1755 McCall
Drive - PK USA Plant No. 2 - off the market, thinking that it will
be needed for future expansion.
In March, PK moved its employees from Plant No. 2 to the Northridge Drive
plant with the intention of selling the McCall Drive building. All of the
workers and machinery at the closed plant were absorbed at the larger
plant; however, an upswing in business has caused PK management to
reconsider the sale.
Growth at PK obviously bodes well for the tax coffers of Shelbyville, even
though the $2 million investment in the community was supported by the
city through the approval of a tax abatement. De Alba said that the
business expansion added eight new production-team workers and $300,000 in
yearly salaries.
PK USA currently has 500 full-time employees and 70 part-time workers at
the Shelbyville plant, which is the North American headquarters for the
international company. PK also has plants in Gallatin, Tenn., and Canton,
Miss.; and all three facilities are primary suppliers of metal body parts,
chassis parts and plastic injection parts for automotive companies
throughout the world.
The parent company of PK USA is the Japanese company of Press Kogo,
which has more than $820 million in assets and employs more than 2,000
people. The global company has five operations in Japan, with 13 locations
worldwide.
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