Turning a custom product to proprietary success

Up until 10 years ago, Perstorp Plastic Systems Americas (Tacoma, WA) was a custom molder specializing in electronics components primarily for Hewlett-Packard. Within the mix of their custom products, however, was a line of collapsible shipping containers, which Perstorp had begun molding for General Motors in 1985. In only four years the company began phasing out its custom molding work to focus exclusively on molding a full line of reusable, returnable containers. Today, the Perstorp system is used for storage, shipping, and material handling by a variety of industries including pharmaceutical and agricultural.

"The company made a conscious decision to go proprietary with the container products because of recognized demand for the reusable shipping and storage container systems," says Thomas J. Walsh, vice president of operations.

The Products

Today, Perstorp molds a complete line of containers. The Collapsi-Tote (above) is injection molded using the gas-assist method. Currently, this product line is made in Perstorp's European facility. Plans are to add production capabilities for this line in North America within a year, says Walsh.

The collapsible-wall containers break down flat to accommodate return shipping to parts suppliers, who then refill the containers with parts. Although the initial purchase price is higher than disposable shipping containers, companies using the Perstorp system realize a long-term savings, and the containers offer better protection of contents during shipping.

Most of the large containers are HDPE structural foam. Perstorp also molds smaller components such as clips and toggles used in assembling the containers. The company operates four large-platen structural foam presses up to 750 tons--Springfields from Uniloy Milacron and Wilmingtons--a 1000-ton Cincinnati and two 220-tonners.

Interchangeable inserts are used to create different products while saving money on the molds. This also enables Perstorp to create containers to meet specific customer requirements. And it saves time, given that a mold set-up for one of the larger molds can take as long as 12 hours.

The company has a sophisticated design department that focuses on new product development. Although there is a mold shop in the Tacoma plant, the company uses outside moldmakers for building new molds. The large, structural foam molds are made of aluminum and typically have lots of action such as slides, lifters, and sequencing, says Walsh.

Other Facilities

Perstorp also has a plant in Detroit, close to the automotive industry that represents its largest market. Three structural foam presses operate there. The plant is a refurbished building located in Detroit's Empowerment Zone, a special urban redevelopment zone in which companies are offered incentives to locate plants and provide jobs for inner city residents.

Recently, the company's parent, Perstorp AB (Perstorp, Sweden) put the finishing touches on an agreement to sell a majority interest (65 percent) in its Perstorp Plastic Systems Division to Industri Kapital, a leading risk capital company in Northern Europe. Perstorp will remain as a shareholder (30 percent). A Plastic Systems' management group has a 5 percent share. Approval of the agreement is pending.

Perstorp Plastic Systems recorded sales of slightly more than SEK 1.4 billion ($180 million) in its most recent fiscal year and employs approximately 1000. It has production facilities in 10 countries in Europe, North America, and Asia.