1989 FIN – Elco and Nagoya Form JV to Manufacture Fasteners for Japanese Automakers in North America
FASTENER HISTORY
1989 FIN – Elco and Nagoya Form JV to Manufacture Fasteners for Japanese Automakers in North America
February 28, 1989 FIN – Elco Industries signed a letter of intent to enter into a joint venture with Nagoya Screw Manufacturing Co. Ltd. of Japan to manufacture and sell fasteners to the Japanese-owned automakers in North America.
Elco CEO Jack Packard told FIN that manufacturing fasteners is the next logical step in the Elco/Nagoya relationship, which began with a technical agreement in March 1988 to jointly design high strength engine bolts.
If the automotive joint venture gets the green light, manufacturing will begin this summer at an existing 56,000 sq ft building in Elko’s industrial complex in Rockford, IL.
Employing about 20 people initially, the operation will produce drive train and other auto body fasteners, which have been jointly developed by Elco and Nagoya.
Packard told FIN the joint venture has the potential to produce an additional $4 million to $10 million in annual sales.
Elco operates four divisions in Rockford – Precision Forming, Construction Products, Coatings & Finishes and International Synergy; a Precision Stamping Division in Logansport, Indiana; and four subsidiaries (Elco Consumer Products Corp. and Excel International, both in Rockford; Thermoplastics Inc., Mishawaka, Indiana; and Anchor Wire Corp., Goodlettsville, Tennessee.
Nagoya Screw is a major automotive fastener manufacturer in Japan and a major supplier to Honda and Mitsubishi.
The Elco/Nagoya venture would be the second U.S./Japan tie-up to supply Japanese automakers’ plants in the U.S. Key Fasteners of Indiana has a joint venture with Sato Rashi of Japan and Key Manufacturing Group Inc. of Southfield, Michigan. ©1989/2009 GlobalFastenerNews.com
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