STAPLES - Stern Rubber Company, Staples, has been acquired by Zhongli, North America.
"I am excited about the opportunities this presents to our customers and our employees," said Bob Jackson, Stern Rubber Co. president, in a news release. "Most importantly we are continuing business as usual. We will maintain our current operations, employees and management team, in a similar capacity and role, albeit, maybe slightly different titles."
Zhongli, North America, is based in Troy, Mich. Zhongli North America is owned by Zhongli Corporation, which was founded and headquartered in Shanghai, China.
Zhongli North America supplies molded rubber components and assemblies for the auto industry, specializing in rubber to metal bonded products and specifically in front suspension components and powertrain mounts.
Stern Rubber reported currently all the corporation's manufacturing is done in China and Zhongli is working to expand manufacturing in North and South America and Europe.
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"The acquisition of Stern Rubber Company is the first step in Zhongli Corporation's strategy to establish a manufacturing presence here in North America for our automotive products and ultimately expand our capabilities for other automotive related components," Kenneth Rohan, vice president of operations for Zhongli North America, Inc. said in a release on PRNewswire.
"Currently Zhongli has a 13,000 square feet technical center in Madison Heights, Mich., where sales, engineering, logistics and quality control functions are performed."
A parts storage and warehouse facility is based in Troy, Mich. and Zhongli has manufacturing facilities in Shanghai and Wuhu, China.
"Stern Rubber Company has the level of manufacturing capabilities we have targeted," Rohan said on PRNewswire. "They are a leading supplier of custom molded rubber and extruded rubber products, specializing in bonding rubber to other substrates such as metal, plastic, cables and other types of rubber. Stern has built their business in non-automotive industries and has three manufacturing facilities in Aitkin and Staples. Their main 50,000 square-foot manufacturing complex is located on 40 acres and the company currently employs 85 people."
"The companies have good synergies, as we both specialize in rubber to metal bonded products, and this will bring additional capabilities to Stern Rubber Company," Jackson said.
He pointed to Zhongli North America's ability for design, development and research, testing of chassis modules and components and powertrain mounts.
"They have research, development and testing capabilities in Michigan, as well as China," Jackson stated. "Combining the resources and talents of both organizations will allow us to broaden our capabilities" while maintaining quality and delivery.
"We plan to continue to support and expand our current customer base, along with adding manufacturing of high volume, automotive components," Jackson said. "We are planning to add staff, space, capabilities and more capacity, which will only help our current customer base."
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Jackson said, on behalf of the company, he wanted to thank Stern Rubber's customers for their business and more details on the business change will follow in the future.
