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DPR Liquid Natural Rubber
Pacer
Industries, Inc. acquired the DPR product line from Royal
Adhesives and Sealants, LLC. Pacer manufactures grinding wheels
and uses DPR as a major raw material. Following Royal’s 2009
announcement about discontinuing DPR, we offered to purchase the
product line which included the confidential manufacturing
technology, equipment, quality procedures, and customer
information. Acquisition occurred in January and Pacer moved
the equipment from Belleville, NJ to its Coatesville, PA
facility. A division, DPR Industries, is being formed and its
website is
www.DPRindustries.com. It now contains technical and other
useful information about the product.
The effort to install the DPR machinery and related
new infrastructure will take several months.
Royal will assist in
the transition and several long-term employees may join Pacer.
When production restarts we will be committed to following all
operating and quality procedures used by Royal so that you can
expect the same high quality liquid rubber. The same products
will be offered: DPR-400, DPR-75, DPR-40, and DPR-35. DPR is a
natural rubber obtained from the Para tree, not a synthetic
rubber from petroleum. It has certain desirable properties not
available with synthetic.
Manufacturing liquid rubber involves a number of
challenges, the main one being the rising cost of solid rubber
from Indonesia. The energy needed to transform solid into
liquid rubber is considerable and that cost is rising.
Increasing costs and decreasing market size are why a company
may decide to discontinue production. Pacer and other users,
however, need DPR for their own products. With no other
supplier available, we undertook to make it for ourselves - and
other users.
The investment to purchase and relocate the
operation was high. There will be expenditures to upgrade some
equipment. In order to recoup these costs and cover higher
operating costs, we must adjust DPR prices. The adjustment is
reasonable especially considering the situation we all faced -
no DPR in the future. Prices then should remain stable for a
long time. We look forward to working with you and providing an
excellent product in a timely manner. Tom Linkins, our Vice
President of Sales and Marketing, will be your primary contact.
Please contact Tom or me if you have questions. Note – We
obtained the remaining inventory of finished goods from Royal.
If you need DPR in the near future, it would be best to order
some of this limited inventory now, while it still is available.
Sincerely,
PACER INDUSTRIES, INC.
Joseph F. Moran
President |
