Molding business still attractive to Zarboni
Canadian Plastics
Politics and plastics may appear to be strange bedfellows, but not to Ralph Zarboni. He has pursued careers in both, without regrets. Yet for Zarboni, chairman and CEO of Craaytech Painted Plastics, t...
Politics and plastics may appear to be strange bedfellows, but not to Ralph Zarboni. He has pursued careers in both, without regrets. Yet for Zarboni, chairman and CEO of Craaytech Painted Plastics, there is still an immense feeling of satisfaction at being a part of business in which his career began.
“I’ve been in the plastics business my whole life. It’s a great business; it’s what I know.”
Zarboni purchased Craaytech 21/2 years ago through his holding company, Rossiter Ventures. Since then, Craaytech has added four new Toshiba injection molding machines, including a 720-ton machine with an extra-wide platen. The company now has a total of 10 injection molding machines at its 45,000 sq. ft. facility in Peterborough, ON. The plant has two paint lines and provides its customers with a line of full-service custom molding capabilities, including welding, assembly, coating and decorating. Paul Peterson and Michael Gondosch share day-to-day management responsibilities at the plant, which molds a variety of parts for the automotive, electronics and consumer markets.
Zarboni began his career in 1962 as a rubber compounding specialist with the British Rubber Company, moving on to wire and cable manufacturer Northern Electric, and finally joining Canadian General Electric. There, Zarboni eventually became general manager of CGE’s Resins and Plastics business. In April of 1984 Zarboni participated in a management buyout of CGE’s Complax Corp. facility in Coburg, ON, becoming president and CEO of the company. Zarboni and partners expanded Complax operations by opening plants in Windsor and Toronto, focusing the business entirely on thermoset (SMC) molding for the automotive industry. Complax was sold in 1988, and eventually the company went out of business as automotive OEMs reduced thermoset usage in favor engineering thermoplastics. That same year, Zarboni acquired a controlling interest in Tarxien, a family injection molding business that had run into financial problems. Zarboni says Tarxien had established a reputable automotive door-handle assemblies business when, in 1996, his partners wanted to divest and he reluctantly made the decision to sell. Versatech Group, which outbid several other companies to buy Tarxien, went into receivership in April 2000. At the time it declared bankruptcy, Versatech, which owned a total of four plastics subsidiaries, owed its principal creditor, CIBC, approximately $78 million. With respect to Versatech’s downfall, Zarboni declined comment except to say it was “sad to see”; noting that the new owners of Tarxien had taken the plant in a significantly different direction.
Politics beckoned and Zarboni twice ran for MP as the progressive conservative candidate in Coburg’s Northumberland riding. Elected office eluded him, but he says the political experience, while at times frustrating, broadened his knowledge of people.
In addition to overseeing Craaytech, Zarboni is the vice chairman of the Automotive Parts Manufacturers Association, and as well sits on the board of directors of a number of companies.
Depending on business conditions, Zarboni says he plans to add as many as 12 injection molding machines at Craaytech over the next 18 months. He is also looking for the right opportunity to acquire another plastics company, possibly in the U.S.
Nearly 40 years of experience in the plastics industry has given Zarboni a perspective on the way the business has changed. “In the early days just about anyone who had a machine could make money. Today, technology has made it easier to get into molding and things are much more competitive.”
PACKAGING PLANTS SOLD TO MANAGERS
Former executives of Spartech Canada have purchased Spartech’s Canadian molding operations and formed a new injection molding enterprise called Plastipak Industries Inc. (Brampton, ON). The $40-million transaction involved three molding plants in Brampton, Toronto and Cookshire, QC, which produce mostly thin-wall containers.
New president and part owner, Normand Tanguay, expects the new enterprise to generate $60 million in revenue in 2002. “The container market is one that we know well, and it offers good growth prospects. We jumped at this opportunity and believe it’s a good deal for Spartech and for our group. We can now concentrate on more specific niches.”
For Spartech, president Bradley B. Buechler says the sale of the molding operations will provide revenue for expansion plans in the company’s core businesses of sheet fabrication, colorants and masterbatches.