Lakeside Plastics to merge under the name KB Components

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Oldcastle automotive supplier Lakeside Plastics was acquired by Swedish industrial group KB Components in an agreement reached on November 6.

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KB Components already has a factory in Windsor and the two factories will merge over the next two years to operate from the Lakeside building.

Currently Lakeside employs 150 full-time and 50 part-time workers, while KB has 30 employees in Windsor.

“The Swedish company has credible business all over the world,” said Unifor Local 195 president Emile Nabbout, who negotiated a new collective agreement to cover the two companies.

“We are really confident about the money invested in the agreement for the future. “

Nabbout said the owner of Lakeside has been looking to sell the business for the past two years, so the deal brings stability to the plant.

KB Components has six other plants in addition to its Windsor operation. The company has three sites in Sweden and one in Mexico, China and Slovakia.

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The company also has a more diverse product line than automobiles with interests in medical, other industrial operations, furniture, lighting and chrome plating.

KB’s local plant manufactures plastic fuel tanks for Kautex and other parts for Omni Plastics.

Lakeside has annual revenue of more than $ 25 million, according to a press release from KB Components, while the combined Windsor operation is expected to generate more than $ 75 million in 2022.

Overall, KB Components has a turnover of over US $ 200 million per year.

“The appeal for the company is that in two years it will be operating from a single factory, which cuts costs,” Nabbout said. “It also expands their markets to electric vehicles and the Lakeside plant has new equipment coming soon.”

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Lakeside is a Level I supplier to original equipment manufacturers like General Motors and Toyota. He also has orders for GM Maven’s electric vehicle sharing service. KB Components is currently a Tier II supplier.

Nabbout said the benefit for local workers is that job security is improved and the new contract establishes pay equity across the workforce.

A general worker at KB Components gets an immediate raise of $ 2 per hour and by the end of the two-year contract he will earn an additional $ 3 per hour to bring it to $ 21.

Lakeside Skilled Trades will get an increase of $ 3 per hour over the term of the contract to bring them in line with their KB peers. At the end of the contract, the skilled trades will earn $ 36.50 per hour.

This is the first time that Unifor Local 195 has negotiated a collective agreement to cover two workforce under a merger agreement.

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“The agreement was conditional on obtaining a contract,” Nabbout said. “It turned out to be a victory for the company, the union and the employees. “

  1. Navdeep Bains, Minister of Innovation, Science and Economic Development, makes a funding announcement for Lakeside Plastics on Wednesday, January 17, 2018.

    Lakeside Plastics Secures $ 1 Million Grant

  2. Lakeside Plastics employees Brian Delcol and Heather Greer-Massey unload items donated to the City Center Mission on December 21, 2016. Over 400 Lakeside Plastics employees in Oldcastle collected several trucks of food, clothing and toys and help those in need through donations to the downtown mission.

    Lakeside Plastics employees give back to the community

  3. Jim Gazo, President of Lakeside Plastics Limited, pictured on Tuesday May 31, 2016, announced that the company plans to hire up to 100 new employees.  (DAX MELMER / The Star of Windsor)

    “Potential” for 100 new jobs at Lakeside Plastics

The other benefit is the hope that the Swedish firm will diversify the customer base of the local company.

“The belief is that they will bring new products to the city,” Nabbout said.

“Right now KB Components and Lakeside manufacture for automobiles, so what’s exciting is that the company is making things other than automobiles. “

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Richard V. Johnson