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.