1988 FIN – Elco, Nagoya Sign Technical Assistance Agreement
April 29, 1988 FIN – Elco Industries Inc. has signed a technical assistance agreement with the Nagoya Screw Manufacturing Co. of Japan.
The agreement, according to Jack W. Packard, Elco president and CEO, will help Rockford, Illinois-headquartered Elco expand its product line into high strength bolts for engine manufacturing, resulting in further increasing market share within the automotive industry.
Packard told FIN that the agreement with Nagoya will facilitate Elco’s securing business from foreign owned auto assembly plants located in the U.S.
Nagoya Screw is not a part of the Okabe Corp. of Japan, which now owns about 13.8% of Elco.
Elco already has a pretty good niche of the $1.5 billion per year auto fastener market. The last figures FIN saw indicated that current Elco sales to GM are $5.77 per car and sales to Ford at $12.45 per car (the company is a current recipient of GM’s Tier 1 and Ford’s Q1 service and quality awards).
Elco doubled its sales per domestic auto from about $4 per car in fiscal 1983 to $8.75 in fiscal 1987. In the first months of fiscal 198, the figure was $10.90. About 47% of Elco’s total sales are auto related.
Elco operations include Precision Forming, Construction Products, Coatings & Finishes, and International/Synergy divisions in Rockford; and a Precision Stamping division in Logansport, Indiana. Other wholly-owned subsidiaries include the Elco Consumer Products Corp, Rockford; Thermoplastics, Inc., Mishawaka, Indiana; Anchor Wire Corp., Goodlettsville, Tennessee; and Excel International Group, Inc., Rockford. ©1988 / 2014 Fastener Industry News.
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