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MGS Mfg. Group, headquartered in Germantown, WI, announced it has purchased Hospira's injection molding facility in Buffalo, NY. A formal announcement was made to facility employees on Monday, April 4, 2014, by members of Hospira and MGS management teams.The plant employs 120 people and runs 40 injection molding machines, ranging from 100 to 400 tons, producing parts for Hospira's pharmaceutical and device businesses. As part of the agreement, Hospira employees who work at the Buffalo facility will join MGS. No layoffs are planned as part of the purchase.

Clare Goldsberry

April 18, 2014

1 Min Read
Contract manufacturer MGS purchases Hospira molding facility in Buffalo

"This represents a strategic move for both companies," stated Paul Manley, MGS Chief Operating Officer and Chief Financial Officer. "MGS has made, and will continue to make, substantial investments in manufacturing technologies and capabilities to increase service to our healthcare industry customers. This opportunity with Hospira will benefit both our organizations."

This isn't the first time that MGS has taken advantage of a molding program. According to John Berg, Director of Marketing, the company evaluates sizeable transfer opportunities several times each year, from existing customers and prospects. And, these opportunities are not "unique to the medical/healthcare industry," Berg told PlasticsToday. "We have transferred and relaunched multiple production mold programs from automotive, electronics, healthcare, and consumer markets. From our perspective, we consider programs that have a track record of production success (significant volumes) with projections for either stability or growth over a five-year period."

MGS Mfg. Group is a leading supplier of tight tolerance injection molded components to global OEMs and operates five manufacturing facilities including TecStar Wisconsin, TecStar Illinois, MGS Antioch, TecStar de Mexico, and MGS Ireland. Companywide, MGS operated 200 presses ranging from 28 to 880 tons. Additionally, the company designs and builds precision injection molds and manufactures specialty multishot equipment and automation systems.

"MGS's expertise in cost-efficient custom manufacturing and molding of components and subassemblies better positions Hospira to meet customers' evolving needs for molded parts," commented Matthew Stober, Senior Vice President, Operations, Hospira. "MGS meets or exceeds ISO and FDA guidelines for single-use disposable plastics manufacturing and will ensure supply continuity is maintained at all Hospira facilities."

The transaction is expected to close at the end of June this year.

About the Author(s)

Clare Goldsberry

Until she retired in September 2021, Clare Goldsberry reported on the plastics industry for more than 30 years. In addition to the 10,000+ articles she has written, by her own estimation, she is the author of several books, including The Business of Injection Molding: How to succeed as a custom molder and Purchasing Injection Molds: A buyers guide. Goldsberry is a member of the Plastics Pioneers Association. She reflected on her long career in "Time to Say Good-Bye."

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